Question

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 $ 12,600 18,300 10,600 28,000 19,400 17,900 24,400 6,700 9,750 13,000 21,000 1,300 6,500 33,000 59,200 229,530 21,000 247,500 14,200 Pepper Company $ 16,000 21,900 9,900 23,950 37,000 14,100 20, 200 9,400 13,000 4,100 45,500 8, 380 3,150 62,500 57,700 310,010 16,700 148,825 21,200 Required: 1. Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year ended December 31, 2017. 2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2017. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year ended December 31, 2017. Garcon Company Pepper Company Direct materials Raw materials available for use

Answer 1

Ans. 1	SCHEDULE   OF   COST   OF   GOODS   MANUFACTURED
		GARSON COMPANY		PEPPER COMPANY
	Particulars	Amount	Amount	Amount	Amount
	Direct materials
	Beginning raw materials inventory	$10,600		$9,900
	Add: Purchase of direct materials	$33,000		$62,500
	Raw materials available	$43,600		$72,400
	Less: Ending raw materials inventory	-$6,700		-$9,400
	Direct materials used (A)		$36,900		$63,000
	Direct labor (B)		$19,400		$37,000
	Manufacturing overhead applied:
	Indirect labor	$1,300		$8,380
	Factory utilities	$9,750		$13,000
	Rental cost on factory equipment	$28,000		$23,950
	Factory supplies used	$13,000		$4,100
	Repairs factory equipment	$6,500		$3,150
	Total manufacturing overhead ©		$58,550		$52,580
	Total manufacturing costs (A+B+C)		$114,850		$152,580
	Add: Beginning Work in process inventory		$18,300		$21,900
	Less: Ending Work in process inventory		-$24,400		-$20,200
	Cost of goods manufactured		$108,750		$154,280
Ans. 2	SCHEDULE   OF   COST   OF   GOODS   SOLD
		GARSON COMPANY	PEPPER COMPANY
	Particulars	Amount	Amount
	Cost of Goods Manufactured	$108,750	$154,280
	Add: Beginning finished goods inventory	$12,600	$16,000
	Cost of goods available for sale	$121,350	$170,280
	Less: Ending finished goods inventory	-$17,900	-$14,100
	Cost of goods sold	$103,450	$156,180
	*Sales, selling general and administrative expenses are the part of income statement.
	*The cost of goods sold would be used in the calculation of gross margin in income statement.