Below are data for two companies:

Requirement

1. Define the three business types: service, merchandising, and manufacturing.

2. Based on the data given for the two companies, determine the business type of each one.

3. Calculate the cost of goods sold of each company.

Transcribed Image Text:

Company 1 Company 2 Beginning balances: Merchandise Inventory Finished Goods Inventory $ ৪,000 $ 12,250 Ending balances: Merchandise Inventory 13,000 Finished Goods Inventory 15,000 Net Purchases 165,000 Cost of Goods Manufactured 172,250