BUS510AH1 Accounting for Managers Summer 2017 Problem Set 2- Please show all calculations Managerial Accounting l. Calculating cost of goods sold for merchandising and manufacturing companies Below are data for two companies: Company 1 Company 2 Beginning balances: Merchandise Inventory $10,000 Finished Goods Inventory $14,250 Ending balances Merchandise Inventory 15,000 17000 Finished Goods Inventory Net Purchases 167 000 Cost of Goods Manufactured 174,250 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 3. Calculate the cost of goods sold of each company. ll. Teltru, Inc. designs and manufactures thermometers used in industrial businesses. A natural disaster occurred, inventory was completely ruined, and the company's computer system, including all account records, was destroyed. Before the disaster recovery specialists clean the buildings, Tim Berger, the company controller, is trying to salvage whatever records he can to support an insurance claim for the destroyed inventory. He is standing in what is left of the accounting department with Bob Vachon, the cost accountant. Bob asked Tim what he should be looking for. "Don't worry about beginning inventory numbers," responds Tim, we'll get them from last year's annual report. We need first-quarter cost data." "I was working on the first-quarter results just before the storm hit," Bob says. "Look, my report's still in my desk drawer. All Ican make out is that for the first quarter, material purchases were $571,200 and direct labor, manufacturing overhead, and total manufacturing costs to account for were $606,000, $294,000, and $1,710,000, respectively. Wait cost of goods available for sale was $1,608,000