Answer:
A. $520,000
B. $1,168,000
Explanation:
Computation to determine the cost of goods sold for each of these two companies for the year ended December 31, 2017.
a. UNIMART Partial income statement
For the year ended December 31,2017
COST OF GOODS SOLD
Beginning merchandise inventory $302,000
Cost of purchase $420,000
Goods available for sale $722,000
Less; Ending merchandise inventory ($202,000)
Cost of goods sold $520,000
b) PRECISION Manufacturing
Partial income statement
For the year ended December 31,2017
COST OF GOODS SOLD
Beginning finished goods inventory $604,000
Cost of manufactured $760,000
Goods available for sale $1,364,000
Less; Ending finished goods inventory ($196,000)
Cost of goods sold $1,168,000
Therefore the cost of goods sold for each of these two companies for the year ended December 31, 2017 will be:
Unimart $520,000
Precision $1,168,000
