Problem
Evaluate the following: The children's department of a major department store had $615,000 in merchandise at the beginning of the year During the year, $836,000 purchases were made. Assuming the year end inventory was $573,200, what is the cost of goods sold? What was the total amount of merchandise available for sale? Given these results, discuss the following: Compare and contrast the cost elements associated with a retailer (or service based business) and a manufacturer? What additional product costs must be recognized within a manufacturer? What additional factors must be recognized by a company that uses a JIT inventory system?