Shown here are annual financial data for a merchandising company and a manufacturing company.

	Music World Retail	Wave-Board Manufacturing
Beginning inventory
Merchandise	$ 200,000
Finished goods		$ 500,000
Cost of merchandise purchased	300,000
Cost of goods manufactured		875,000
Ending inventory
Merchandise	175,000
Finished goods		225,000

Required:

Prepare the cost of goods sold section of the income statement for each company.

Prepare the cost of goods sold section of the income statement for the Merchandising Business.

Prepare the cost of goods sold section of the income statement for the Manufacturing Business