Answer:
Let Company 1 be Green Company Ltd
Let Company 2 be Yellow Company Ltd
Green Company Ltd
Partial Income Statement
For year ended December 31, 2017
Beginning merchandise inventory $125,000
Add: Cost of purchases $320,000
Goods available for sale $445,000
Less: Ending merchandise inventory <u>$110,000
</u>
Cost of goods sold <u>$335,000</u>
Yellow Company Ltd
Partial Income Statement
For year ended December 31, 2017
Beginning finished goods inventory $380,000
Add: Cost of goods manufactured $572,000
Goods available for sale $952,000
Less: Ending finished goods inventory <u>$300,000</u>
Cost of goods sold <u>$652,000</u>