Question

How is the cost of a product measured for a merchandiser and a manufacturer?

Answer 1

manufacturer	merchandiser
producer of goods	include wholeseller,retailer
convert raw material into finished goods	re sold goods purchased from producer to consumer
cost=raw material cost+convertion cost +administration exp+selling expense	cost=purchase price paid to m"rer +opareting expenses
profit=selling price-cost	profit=mark up on cost

cost of goods sold

manufacturer	merchandiser
begening finished inventory *****	begening merchendised inventory *****
+cost of goods manufactured ******	+cost of merchandise purchased *****
cost of goods available for sale	cost of goods available for sale
(-)closeing finished inventory ******	(-)closeing merchendised inventory ****
cost of goods sold *****	cost of goods sold    ******

inventory:

• ?manufacturer maintaince inventory of raw material,work in progress,finished goods
• ?but merchendiser maintains only finished goods
• merchandisers may classify inventory into dozens of categories, each product on hand is ready for sale to consumers.