Shown here are annual financial data at December 31, 2009, taken from two different companies.

Required
1. Compute the cost of goods sold section of the income statement at December 31, 2009, for each company. Include the proper title and format in the solution.
2. Write a half-page memorandum to your instructor
(a) Identifying the inventory accounts and
(b) Identifying where each is reported on the income statement and balance sheet for bothcompanies.

Transcribed Image Text:

AAA Imports (Retail) Marina Boats (Manufacturing) Beginning inventory Merchandise. Finished goods 50,000 $200,000 350,000 Cost of purchases. Cost of goods manufactured Ending inventory 686,000 Merchandise Finished goods 25,000 300,000