Question

Using the following data, 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 $ 15,000 16,500 10,000 30,000 23,000 21,000 28,000 11,700 7,000 14,200 26,000 1,250 4,780 31,000 50,000 195,030 20,000 212,500 13,200 Pepper Company $ 19,000 19,000 13,000 28,500 41,000 18,000 15,000 9,800 12,000 7,400 39,000 7,660 1,500 41,000 46,000 290,010 15,700 115,825 19,450

Please organize the chart as seen and explain all calculations, other wise I will mark as incorrect. Thank You!

Answer 1

	Garcon Company	Pepper Company
Direct materials:
Beginning raw materials inventory	$10,000	$13,000
Add: Raw materials purchases	$31,000	$41,000
Raw materials available for use	$41,000	$54,000
Less: Ending raw materials inventory	($11,700)	($9,800)
Direct materials used (a)	$29,300	$44,200
Direct labor (b)	$23,000	$41,000
Factory overhead:
Rental cost on factory equipment	$30,000	$28,500
Factory utilities	$7,000	$12,000
Factory supplies used	$14,200	$7,400
Indirect labor	$1,250	$7,660
Repairs - Factory equipment	$4,780	$1,500
Total factory overheads (c )	$57,230	$57,060
Total manufacturing costs (a+b+c)	$109,530	$142,260
Add: Beginning work in process inventory	$16,500	$19,000
Total cost of work in process	$126,030	$161,260
Less: Ending work I process inventory	($28,000)	($15,000)
Cost of goods manufactured	$98,030	$146,260
2)
	Garcon Company	Pepper Company
Cost of goods manufactured	$98,030	$146,260
Add: Beginning finished goods inventory	$15,000	$19,000
Cost of goods available for sale	$113,030	$165,260
Less: Ending finished goods inventory	($21,000)	($18,000)
Cost of goods sold	$92,030	$147,260