Homework: Chapter 16 Homework Score: 0 of 6 pts P16-27A (similar to) Below are d

Question

Homework: Chapter 16 Homework Score: 0 of 6 pts P16-27A (similar to) Below are deta for to companles: 5of5 (1 complete) Ef Cick the icon to view the data.) Read tha requiramants Rsquiremant 1. Define the three businass typas: service, merchandising, and manufachuring Business type Definition Service Data Table Company A Com pany B Baginning balances Merchandise Inventory FInishad Goods Inventory 10,200 $6200 Ending belances: 13,100 Merchandise Inventory Finished Gouds Inventory 12 900 Nat Purchasas 153,500 Cost of Goods Manufachured 214000 Prin Done

Explanation / Answer

1)Service companies sell cusotmer serives rather than prodcuts.They sell time,skills and knowledge.

Merchandising Companies resell products bought from suppliers . It can be said it is trading activity

Manufacturing Companies uses labor , equipment , supplies and facilities to convert raw materials into finished goods/products.

2)Looking at the data:

Company A : is a Merchandising company

Company B : is a mnaufacturing Company

The company type can be determined by the account names in ledger

3)

Company A Beginning Merchandise Inventory $10,200 Add:Net Purchases $153,500 Cost of Goods Availavble for sale $163,700 Less:ending merchandise Inventory ($13,100) Cost of Goods Sold $150,600

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