Student Name:
Class:
Merchandising Business
200,000$
300,000
500,000
175,000
325,000$
Correct!
Manufacturing Business
Partial Income Statement
500,000$
875,000
1,375,000
225,000
1,150,000$
Correct!
Part 2
To:
From:
Date:
Subject:
Problem 18-06A
McGraw-Hill/Irwin
Instructor
For Year Ended December 31, 2013
Partial Income Statement
SPORTS WORLD RETAIL
have raw materials and goods in process inventory accounts.
Cost of goods sold
of the balance sheet. Since Sno-Board is a manufacturer, it will also
The inventory accounts must also be included in the current asset section
The Merchandise Inventory account on December 31 for both Sports World
and the Finished Goods Inventory account on December 31 for Sno-Board
are computed and reported on the income statement as part of cost of
goods sold.
For Year Ended December 31, 2013
Cost of goods sold:
Merchandise inventory, December 31, 2012
Merchandise purchases
Goods available for sale
Less merchandise inventory, December 31, 2013
Cost of goods sold
Cost of goods sold:
Finished goods inventory, December 31, 2012
Cost of goods manufactured
Goods available for sale
Less finished goods inventory, December 31, 2013
Sports World Sno-Board
Retail Manufacturing
200,000$
500,000$
300,000
875,000
175,000
225,000
1,150,000$
Cost of purchases
Financial data at December 31, 2013:
Given Data P18-06A:
Beginning inventory:
Merchandise
Finished goods
Check figure:
(1) Sno-Board’s cost of goods sold
Cost of goods manufactured
Ending inventory
Merchandise
Finished goods