Question

Required information The following information applies to the questions displayed below. The following data is provided for Garcon Company and Pepper Company 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 16,800 10,600 34,750 21,000 20,600 22,900 7,600 9,150 13,600 28,500 2,200 5,900 44,500 60,800 201,030 33,000 227,500 15,800 Pepper Company $ 16,300 22,500 9, 150 23,500 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. Compute the total prime costs for both Garcon Company and Pepper Company. 2. Compute the total conversion costs for both Garcon Company and Pepper Company. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the total prime costs for both Garcon Company and Pepper Company. Garcon Company Pepper Company Direct materials Raw materials available for use Direct materials used

Answer 1

Calculation of Prime cost
	Garcon	Pepper
Direct Materials
Beginning Inventory	10,600	9,150
Purchases	44,500	62,500
Raw material available for use	55,100	71,650
Less: Ending Inventory	7,600	7,600
Direct material used	47,500	64,050
Direct labor	21,000	38,200
Prime cost	68,500	102,250
Total conversion cost
	Garcon	Pepper
Direct labor	21,000	38,200
Manufacturing overheads
Rental cost of factory equipment	34,750	23,500
Factory utilities	9,150	15,000
Indirect material	13,600	5,800
Indirect labor	2,200	8,380
Repairs	5,900	3,000
Conversion Cost	86,600	93,880