Shown here are annual financial data taken from two different companies.

Music World Retail Wave-Board Manufacturing Beginning inventory Merchandise $ 135,000 Finished goods $ 300,000 Cost of purchases 320,000 Cost of goods manufactured 597,000 Ending inventory Merchandise 70,000 Finished goods 230,000

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.