Question

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 $12,30i0 19,000 11,800 33,500 $ 17,050 19, 500 13,800 22,600 21,800 17,150 41,400 15,000 22, 300 17,000 6,800 11,850 10,000 8,000 14,250 5,200 35,000 59,500 2,000 7, 700 46,000 52,400 231,030 26,000 232,500 13,600 8,860 2,200 56, 500 57,700 305,010 18,700 127,825 24,700 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

Answer 1

1)	COST OF GOODS MANUFACTURED
		Garcon Company		Pepper Company
	Direct material:
	Beginning raw materials inventory	11800		13800
	Raw material purchases	46000		56500
	Cost of materials available for use	57800		70300
	Less: Ending materials inventory	6800		8000
	Direct materials used		51000		62300
	Direct labor		21800		41400
	Manufacturing overhead:
	Rental cost on factory equipment	33500		22600
	Factory supplies used	10000		5200
	Indirect labor	2000		8860
	Factory utilities	11850		14250
	Repairs-Factory equipment	7700		2200
	Total manufacturing overhead		65050		53110
	Total manufacturing costs for the year		137850		156810
	Add: Beginning WIP inventory		19000		19500
	Total cost of work in progress during the year		156850		176310
	Less: Ending WIP inventory		22300		17000
	Cost of goods manufactured		134550		159310
2)	COST OF GOODS SOLD
	Beginning finished goods inventory		12300		17050
	Cost of goods manufactured		134550		159310
	Cost of goods available for sale		146850		176360
	Ending finished goods inventory		17150		15000
	Cost of goods sold		129700		161360