Managerial Accounting Concepts and Principles ! Accounting homework help!!

Problem 18-01 Class: Part 1: Cost of Goods Sold for a Merchandising Business PINNACLE RETAIL Partial Income Statement For Year Ended December 31, XXX2 Cost of goods sold: Merchandise inventory, December 31, XXX1 Merchandise purchases Goods available for sale Less merchandise inventory, December 31, XXX2 Cost of goods sold Part 2: Cost of Goods Sold for a Manufacturing Business SLOPE BOARD MANUFACTURING Partial Income Statement For Year Ended December 31, XXX2 Cost of goods sold: Finished goods inventory, December 31, XXX1 Cost of goods manufactured Goods available for sale Finished goods inventory, December 31, XXX2 Cost of goods sold Part 3: Explain the difference between calculating cost of goods sold for a merchandising and a manufacturing business. Indicate what inventory accounts are used for each and on what financial statement and in which section these inventory accounts would be included. Given Data P18-01: Financial data at December 31, 2005: Pinnacle Slope Board Retail Manufacturing Beginning inventory: Merchandise Finished goods Cost of purchases Cost of goods manufactured Ending inventory Merchandise Finished goods Check figure: (1) Slope Board's cost of goods sold $150,000 $300,000 250,000 586,000 100,000 200,000 $686,000 Instructions: Part 1: Complete the partial income statement for Pinnacle, a merchandising business. Part 2: Complete the partial income statement for Slope, a manufacturing business. Part 3: Explain the difference between calculating cost of goods sold for a merchandising and a manufacturing business. Indicate what inventory accounts are used for each and on what financial statement and in which section these inventory accounts would be included