Question

4 Homework Saved mwenyewe 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 13,700 16,500 9,80 32,880 21,600 18,650 26, 200 6,900 9,150 10,000 33,500 2,350 6,380 42,000 55,600 202,530 Pepper Company $ 16,900 23,850 14,189 23,289 35,000 13,400 18,400 9,480 15,500 5,800 55,500 9,040 3,180 54,500 enses 50,200 30,000 332,510 21,200 172,825 23,450 222,500 13,400 Required:

Answer 1

		Garcon company
		Income Statement
Sales				202,530
less:Cost of goods sold				111,730
Gross Profit				90,800
Operating expense
General & administrative expense				33,500
Selling expense				55,600
Income (loss)before tax				1,700
Pepper company
Income Statement
Sales				332,510
less:Cost of goods sold				159,290
Gross Profit				173,220
Operating expense
General & administrative expense				55,500
Selling expense				50,200
Income (loss)before tax				67,520
Garcon company
Partial Balance Sheet
Cash				30,000
Accounts receivable,net				13,400
Invetories
Raw Materials inventory			6,900
Work in process inventory			26,200
Finished goods inventory			18,650
				51,750
Total current assets				95,150
Pepper company
Income statement
Cash				21,200
Accounts receivable,net				23,450
Invetories
Raw Materials inventory			9,400
Work in process inventory			18,400
Finished goods inventory			13,400
				41,200
Total current assets				85,850
note cost of goods sold= opening inventories+ all production costs-
closing inventories

Required 1
				Garcon	Pepper
				company	Company
Direct Materials
Beginning raw materials inventory				9,800	14,100
Raw materials purchases				42,000	54,000
Raw materials available for use				51,800	68,100
Ending raw materials inventory				6,900	9,400
Direct materials used				44,900	58,700
Direct labor				21,600	35,000
Total prime costs				66,500	93,700
Required 2
				Garcon	Pepper
				company	Company
Direct labor				21,600	35,000
Factory overhead
Rental cost on factory equipment				32,000	23,200
Factory utilities				9,150	15,500
Factory supplies used				10,000	5,800
Indirect labor				2,350	9,040
Repairs- factory equipment				6,380	3,100
total factory overhead				59,880	56,640
total conversion costs				81,480	91,640