Income Statement Terminology: Manufacturing Versus Merchandising. Match each of the following terms used in a manufacturing company’s income statement with the equivalent term used in a merchandising company’s income statement.

Manufacturing Company

1 _____ Cost of goods manufactured

2 _____ Work-in-process inventory

3 _____ Finished goods inventory

4 _____ Cost of goods sold

 Merchandising Company

5. Merchandise inventory

6. Same term is used by a merchandising company

7. Net purchases

8. Not applicable for a merchandising company.