Question

Required information (The following information applies to the questions displayed below.) The following data is provided for Garcon Company and Pepper Company. Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory Rental cost on factory equipment Direct labor Ending finished goods inventory Ending work in process inventory Ending raw materials inventory Factory utilities Factory supplies used General and administrative expenses Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses Sales Cash Factory equipment, net Accounts receivable, net Garcon Company $ 14,000 17,800 10,000 31,250 21,800 20,900 24,100 6,400 10,350 9, 100 24,500 2,000 6,980 38,000 63,600 238,530 29,000 277,500 15,600 Pepper Company $ 17,950 22,500 12,150 25,600 39,800 16,300 20,200 9,000 13,500 4,700 57,000 9,520 1,750 65,000 57.100 317,510 23,700 130,825 22,950

Answer 1

Cost of goods sold: Pepper Company Particulars Garcon Campany Begininig raw materials Add: Raw material purchases Less: Ending raw materials Raw materials consumed Add: Direct labor Prime cost Add: Factory overhead Rent on factory equioment Factory utilities Factory supplies Repairs-factory equipment Indirect labor 10,000 12,150 38,000 65,000 6,400 9,000 41,600 68,150 21,800 39,800 63,400 107,950 31,250 25,600 10,350 13,500 9,100 4,700 6,980 1,750 2,000 9,520 163,020 123,080 Add: Beginning WIP 17,800 22,500 Less: Closinig WIP Work cost Add: Office & aminsitrative overhead General & adminnistraive expense Cost of production Add: Beginning finished goods Less: Ending finished goods Cost of good sold 24,100 20,200 116,780 165,320 57,000 24,500 222,320 141,280 17,950 14,000 20,900 16,300 134,380 223,970

la Income staement for the year ended Dec 31, 2017 Pepper Company Garcon Campany Particulars Sales 238,530 317,510 Less: Cost of goods sold Gross profit Less: Selling expense Net income 134,380 223,970 104,150 93,540 63,600 57,100 40,550 $ 36,440 1b Partial Balance Sheet As on Dec 31, 2017 Pepper Company Garcon Campany Particulars Assets: Current assets Cash 29,000 23,700 Accounts receivable 15,600 22,950 Inventory Total current assets Fixed assets Factory machinery 20,900 16,300 65,500 62,950 277,500 130,825 Liabilities: 36,440 Net income 40,550