91Ó°ÊÓ

Service companies are defined as the company which sell their time, skills, and knowledge to the customers and clients of the company

A merchandising company is defined as acompany that resells products they buy from the suppliers. Merchandisers keep the inventory of products.

A manufacturing company is a company that uses labor, equipment, supplies, and facilities to convert raw materials into finished goods and sell them.

Company A is a merchandising company as its particulars include the data for merchandising inventory

Company B is a manufacturing company as its particulars include the data for ending and beginning balance of finished goods inventory and cost of goods manufactured.

$$\begin{gathered} \mathbf{CostofgoodssoldofCompanyA}\mathbf{=}\mathbf{BeginningmerchandiseInventory}\mathbf{+}\mathbf{Purchases}\mathbf{-}\mathbf{EndingMerchandisingInventory} \\ \mathbf{=}\mathbf{10}\mathbf{,}\mathbf{600}\mathbf{+}\mathbf{154}\mathbf{,}\mathbf{500}\mathbf{-}\mathbf{13}\mathbf{,}\mathbf{100} \\ \mathbf{=}\mathbf{\$}\mathbf{152}\mathbf{,}\mathbf{000} \end{gathered}$$

$$\begin{gathered} \mathbf{CostofgoodssoldofCompanyB}\mathbf{=}\mathbf{BeginningFinishedGoodsInventory}\mathbf{+}\mathbf{COGM}\mathbf{-}\mathbf{EndingFinishedGoodsInventory} \\ \mathbf{=}\mathbf{15}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{214}\mathbf{,}\mathbf{500}\mathbf{-}\mathbf{11}\mathbf{,}\mathbf{700} \\ \mathbf{=}\mathbf{\$}\mathbf{217}\mathbf{,}\mathbf{800} \end{gathered}$$