Question

Required information Use the following information for the Exercises below. The following information applies to the questions displayed below! The following data is provided for Garcon Company and Pepper Company Garcon Company $ 14,900 Pepper Company $ 18,180 16,689 21,150 7,400 10,200 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 31,250 23,200 17,980 27,700 6,700 9,300 11,200 23,000 1,600 5,980 43,500 55,200 207,830 30,000 237,500 14,000 25,900 42,200 16,200 21,400 9,600 17,500 4,100 48,000 9,280 2,700 68,500 46,300 302,518 18,780 127,825 20,450

Answer 1

Solution:

1.)The total prime cost for both company

	Garcon Company	Pepper Company
Direct materials
Beginning raw materials inventory	$7,400	$10,200
Raw materials purchases	$43,500	$68,500
Raw materials available for use	$50,900	$78,700
Less:Ending raw materials inventory	$6,700	$9,600
Direct materials used	$44,200	$69,100
Direct labor	$23,200	$42,200
Total prime costs	$67,400	$111,300

2.) The total conversion costs for both company:

	Garcon Company	Pepper Company
Direct labor	$23,200	$42,200
Factory overhead:
Rental cost on factory equipment	$31,250	$25,900
Factory utilities	$9,300	$17,500
Factory supplies used	$11,200	$4,100
Indirect labor	$1,600	$9,280
Repairs - Factory equipment	$5,900	$2,700
Total factory overhead	$59,250	$59,480
Total conversion costs	$82,450($59,250+$23,200)	$101,680 ($59,480 + $42,200)