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.

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