Shown here are annual financial data at December 31, 2013, taken from two different companies.

Required
1. Compute the cost of goods sold section of the income statement at December 31, 2013, 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
(b) Describing where each is reported on the income statement and balance sheet for bothcompanies.

Sports World Sno-Board Retail Manufacturing Beginning inventory $200,000 Finished goods $500,000 Cost of goods manufactured Ending inventory 875,000 Merchandise Finished goods. ....175,000 225,000