Question: 1. Compute cost of goods sold for year 2011 using the following information.
Finished goods inventory, Dec. 31, 2010 . . . . . . . . . . . . $321,500
Goods in process inventory, Dec. 31, 2010 . . . . . . . . . 74,550
Goods in process inventory, Dec. 31, 2011 . . . . . . . . . 81,200
Cost of goods manufactured, year 2011 . . . . . . . . . . . 972,345
Finished goods inventory, Dec. 31, 2011 . . . . . . . . . . . . 297,200
2. How does cost of goods sold differ for merchandising versus manufacturing companies?