Question

Compute cost of goods sold for each of these two companies for the year ended December 31, 2017.

Unimart Precision Manufacturing

Beginning inventory

Merchandise 275,000

Finished goods 450,000

Cost of purchases 500,000

Cost of goods manufactured 900,000

Ending inventory

Merchandise 115,000

Finished goods 375,000

Short answer

The cost of goods for Unimart is $660,000 and for Precision Manufacturing is$975,000.

Step-by-step solution

Cost of goods sold for Unimart

Cost of goods sold
	Amount ($)
Beginning Merchandise Inventory	275,000
Add: merchandise Purchases	500,000
Goods Available for sale	775,000
Less: Ending Merchandise Inventory	-115,000
Cost of goods sold	660,000

Cost of goods sold for Precision Manufacturing

Cost of goods sold
	Amount ($)
Beginning Merchandise Inventory	450,000
Add: merchandise Purchases	900,000