Compute cost of goods sold for each of these two companies for the year ended December 31, 2011.

 

Century
Merchandising

New Homes
Manufacturing

Beginning inventory

 

 

Merchandise

$250,000

 

Finished goods

 

$500,000

Ending inventory

 

 

Cost of purchases

460,000

 

Cost of goods manufactured

 

886,000

Merchandise

150,000

 

Finished goods

 

144,000