Question

Unimart Precision Manufacturing

Beginning inventory
Merchandise $275,000
Finished goods $450,000
Cost of purchases 500,000
Cost of goods manufactured 900,000
Ending inventory
Merchandise 115,000
Finished goods 375,000

Required:
Compute cost of goods sold for each of these two companies for the year.

Answer 1

Cost of goods sold for each of these two companies for the year :

Unimart = $660,000

Precision Manufacturing = $975,000

Step-by-step explanation:

Note : I have attached the full question as image below.

Unimart

Beginning Merchandise Inventory $275,000

Add Purchases $500,000

Less Ending Merchandise Inventory ($115,000)

Cost of Goods Sold $660,000

Precision Manufacturing

Beginning Finished Goods Inventory $450,000

Add Cost of Goods Manufactured $900,000

Less Ending Finished Goods Inventory ($375,000)

Cost of Goods Sold $975,000