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Accounting Problem 18-01

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Problem 18-01;Class;Part 1: Cost of Goods Sold for a Merchandising Business;PINNACLE RETAIL;Partial Income Statement;For Year Ended December 31, XXX2;Cost of goods sold;Merchandise inventory, December 31, XXX1;Merchandise purchases;Goods available for sale;Less merchandise inventory, December 31, XXX2;Cost of goods sold;Part 2: Cost of Goods Sold for a Manufacturing Business;SLOPE BOARD MANUFACTURING;Partial Income Statement;For Year Ended December 31, XXX2;Cost of goods sold;Finished goods inventory, December 31, XXX1;Cost of goods manufactured;Goods available for sale;Finished goods inventory, December 31, XXX2;Cost of goods sold;Part 3: Explain the difference between calculating cost of goods sold for a merchandising and a manufacturing business. Indicate what inventory accounts are used for each and on what financial statement and in which section these inventory accounts would be included.;Given Data P18-01;Financial data at December 31, 2005;Pinnacle Slope Board;Retail;Manufacturing;Beginning inventory;Merchandise;Finished goods;Cost of purchases;Cost of goods manufactured;Ending inventory;Merchandise;Finished goods;Check figure;(1) Slope Board's cost of goods sold;$150,000;$300,000;250,000;586,000;100,000;200,000;$686,000;Instructions;Part 1: Complete the partial income statement for Pinnacle, a merchandising business.;Part 2: Complete the partial income statement for Slope, a manufacturing business.;Part 3: Explain the difference between calculating cost of goods sold for a merchandising and a manufacturing business.;Indicate what inventory accounts are used for each and on what financial statement and in which section these inventory accounts would be included.

 

Paper#81145 | Written in 18-Jul-2015

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