Question

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. 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 $ 12,000 14,500 7,250 27,000 19,000 17,630 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 Pepper Company $ 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

Answer 1

First, we can calculate cost of goods manufactured

	Garcon Company	Pepper Company
Direct materials
Beginning raw material inventory	$                        7,250	$                         9,000
Add: Raw materials purchased	$                      33,000	$                      52,000
Raw material available for use	$                      40,250	$                      61,000
Less: Ending raw material inventory	$                        5,300	$                         7,200
Direct material used	$                      34,950	$                      53,800
Direct labor	$                      19,000	$                      35,000
Factory overhead
Factory utilities	$                        9,000	$                      12,000
Rental cost on factory equipment	$                      27,000	$                      22,750
Factory supplies used	$                        8,200	$                         3,200
Indirect labor	$                        1,250	$                         7,660
Repairs - Factory equipment	$                        4,780	$                         1,500
Total manufacturing cost	$                   104,180	$                    135,910
Add: Beginning work in process inventory	$                      14,500	$                      19,950
Total cost of work in process	$                   118,680	$                    155,860
Less: Ending work in process inventory	$                      22,000	$                      16,000
Cost of goods manufactured	$                      96,680	$                    139,860

	Garcon Company	Pepper Company
Beginning finished goods inventory	$                      12,000	$                      16,450
Add: Cost of goods manufactured	$                      96,680	$                    139,860
Cost of goods available for sale	$                   108,680	$                    156,310
Less: Ending finished goods inventory	$                      17,660	$                      13,300
Cost of goods sold	$                      91,020	$                    143,010

Please note that, ending finished goods inventory for Garcon Company not visible properly becuase of mouse curser. assumed 17,660 and given. if other amount please change accordingly

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