Question:
What are the differences between the cost of goods sold sections in a manufacturer"s and a merchandiser"s income statements?
a. A merchandiser uses Merchandise Inventory and Direct Labor, whereas a manufacturer uses Finished Goods Inventory and Cost of Goods Manufactured.
b. A merchandiser uses Merchandise Inventory and Cost of Goods Available for Sale, whereas a manufacturer uses Finished Goods Inventory and Cost of Goods Available for Sale.
c. A merchandiser uses Work in Process Inventory and Cost of Goods Sold, whereas a manufacturer uses Finished Goods Inventory and Cost of Goods Sold.
d. None of the above.