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

Music World Retail Wave-Board Manufacturing

Beginning inventory Merchandise $ 125,000

Finished goods $ 370,000

Cost of merchandise purchased 260,000

Cost of goods manufactured 600,000

Ending inventory Merchandise 160,000

Finished goods 170,000

Required:

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