Question

Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory (direct materials) 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 (indirect materials) General and administrative expenses Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses Sales Cash Factory equipment, net Accounts receivable, net Garcon Company $13,000 16,880 10,600 34,750 21,000 20.600 22,900 7.620 9,150 13,600 28,500 2,200 5.900 44,500 60, 820 201,030 33,000 227,500 15,800 Pepper Company $16,300 22,500 9,150 23,5ee 38,200 13,100 21,400 7.600 15,000 5,800 46,000 8,380 3.000 62,500 47.500 312,510 18,200 145,825 19,450 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, 2019. 2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2019 Complete this question by entering your answers in the tabs below. Required Required Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year ended December 31, 2019. Garcon Company Pepper Company Direct materials Raw materials available for Use Direct materials used Factory overhead Total factory overhead Total manufacturing costs Total cost of work in process Cost of goods manufactured Required 1 Required 2 >

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		$9,150
	Add: Purchase of direct materials	$44,500		$62,500
	Raw materials available	$55,100		$71,650
	Less: Ending raw materials inventory	-$7,600		-$7,600
	Direct materials used (A)		$47,500		$64,050
	Direct labor (B)		$21,000		$38,200
	Manufacturing overhead applied:
	Indirect labor	$2,200		$8,380
	Factory utilities	$9,150		$15,000
	Rental cost on factory equipment	$34,750		$23,500
	Factory supplies used	$13,600		$5,800
	Repairs factory equipment	$5,900		$3,000
	Total manufacturing overhead ©		$65,600		$55,680
	Total manufacturing costs (A+B+C)		$134,100		$157,930
	Add: Beginning Work in process inventory		$16,800		$22,500
	Less: Ending Work in process inventory		-$22,900		-$21,400
	Cost of goods manufactured		$128,000		$159,030
Ans. 2	SCHEDULE   OF   COST   OF   GOODS   SOLD
		GARSON COMPANY	PEPPER COMPANY
	Particulars	Amount	Amount
	Cost of Goods Manufactured	$128,000	$159,030
	Add: Beginning finished goods inventory	$13,000	$16,300
	Cost of goods available for sale	$141,000	$175,330
	Less: Ending finished goods inventory	-$20,600	-$13,100
	Cost of goods sold	$120,400	$162,230
	*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.