Question

Using the following data from both Garcon Company and Pepper Company for the year December 31, 2019, compute (1) the cost of goods manufactured and (2) the cost of goods sold Exercise 18-8 Cost of goods manufactured and cost of goods sold computation P1 P2 Garcon Co. Pepper Co. 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 $ 12,000 14,500 7,250 27,000 19,000 17,650 22,000 5.300 9.000 8,200 21,000 1.250 4.780 33,000 50,000 195,030 20,000 212,500 13,200 $ 16,450 19,950 9,000 22,750 35.000 13,300 16,000 7,200 12,000 3.200 43.000 7,660 1,500 52.000 46,000 290.010 15,700 115,825 19,450 Check Garcon COGS $91.030 Factory equipment, net... Accounts receivable, net....

Answer 1

Garcon Company Cost of Goods Manufactured schedule Pepper Company Cost of Goods Manufactured schedule 14,500 19,950 7,250 33,000 40,250 5,300 9,000 52,000 61,000 7,200 Opening WIP Direct Materials OP.RM Inventory Purchases Total RM available for use Less:- CI.RM Inventory DM use D. labour Mfg. OH rental cost on FE Factory Utilities Factory supplies Indirect labour Factory equipment repairs 34,950 19000 Opening WIP Direct Materials OP.RM Inventory Purchases Total RM available for use Less:- CI.RM Inventory DM use D. labour Mfg. OH rental cost on FE Factory Utilities Factory supplies Indirect labour Factory equipment repairs 53,800 35000 27,000 9,000 8,200 1,250 4,780 22,750 12,000 3,200 7,660 1,500 50,230 47,110 Total Mfg. OH Total Mfg. cost Total cost of WIP Less :- CI. WIP Cost of goods Manufactured 1,04,180 1,18,680 22,000 96,680 Total Mfg. OH Total Mfg. cost Total cost of WIP Less :- CI. WIP Cost of goods Manufactured 1,35,910 1,55,860 16,000 1,39,860 Schedule of Cost of goods sold Opening Finished Goods 12000 Add:- cost of goods manufactured 96,680 Total 108680 Less:- closing FG 17650 COGS 91030 Schedule of Cost of goods sold Opening Finished Goods 16450 Add:-cost of goods manufactured 1,39,860 Total 156310 Less:- closing FG 13300 COGS 143010

Garcon Company Pepper Company Income statement Income statement Sales Less:- COGS 195030 91030 104000 Sales Less:- COGS 290010 143010 147000 GP GP Less:- Operating exp. Selling exp. Less:- Operating exp. Selling exp. Administrative exp. Net income 50000 21000 46000 43000 71000 33000 Administrative exp. Net income 89000 58000 20000 13200 15700 19450 Balance sheet ( partial) Current assets Cash Accounts receivable Inventory Finished goods 17650 WIP 22000 Raw material 5300 Total Balance sheet ( partial) Current assets Cash Accounts receivable Inventory Finished goods 13300 WIP 16000 Raw material 7200 Total 44950 78150 36500 71650