Questions: A manufacturer's cost of goods sold is based on its manufacturing costs incurred during the year. In contrast, a merchandiser's cost of goods sold is based on its merchandise purchases.

A manufacturer's cost of goods sold is based on its manufacturing costs incurred during the year. In contrast, a merchandiser's cost of goods sold is based on its merchandise purchases.

Transcript text: A manufacturer's cost of goods sold is based on its $\square$ manufacturing costs incurred during the year In contrast, a merchandiser's cost of goods sold is based on its $\square$ merchandise purchases.

Solution

The question appears to be incomplete, but I can address the part that is clear. It seems to be asking about the difference between a manufacturer's cost of goods sold (COGS) and a merchandiser's COGS.

A manufacturer's cost of goods sold is based on its total manufacturing costs incurred during the year. This includes direct materials, direct labor, and manufacturing overhead.

In contrast, a merchandiser's cost of goods sold is based on its merchandise purchases. This includes the cost of the goods that the merchandiser buys for resale, adjusted for changes in inventory levels.

To summarize: