Problem 01-5A Inventory computation and reporting LO C4, P1 Shown here are annual financial data taken from two different companies. Music World Retail Wave-Board Manufacturing Beginning inventory Merchandise $ 200,000 Finished goods $ 500,000 Cost of purchases 300,000 Cost of goods manufactured 875,000 Ending inventory Merchandise 175,000 Finished goods 225,000

Required: 1. Prepare the cost of goods sold section of the income statement for the year for each company in Merchandising Business and Manufacturing Business