Question

Help Save & Exit Submit 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 $ 13,500 17,800 11,900 33,000 19,200 19,550 24,700 7,300 11,550 12,100 32,500 1,850 5,540 47,500 62.400 241,530 30,000 282,500 15,400 Pepper Company $ 17,050 20,400 10,800 22,750 43,400 13,700 21,800 9,800 16,000 5,600 53,000 9,700 3,150 61,000 52,300 315,010 24, 200 178,825 24,200 Required: 1. Complete the table to find the cost of goods manufactured for both Garcon Comšany and Pepper Company for the year ended December 31, 2019. 2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2019.

Answer 1

Schedule of Cost of Goods Manufactured
	Garcon Company	Pepper Company
Direct Materials:
Beginning raw materials inventory	$11,900	$10,800
Add: Raw materials purchases	$47,500	$61,000
Raw materials available for use	$59,400	$71,800
Less: Ending raw materials inventory	$7,300	$9,800
Raw Materials used	$52,100	$62,000
Direct labor	$19,200	$43,400
Factory Overhead:
Rental cost on factory equipment	$33,000	$22,750
Factory utilties	$11,550	$16,000
Factory supplies used	$12,100	$5,600
Indirect labor	$1,850	$9,700
Repairs - factory equipment	$5,540	$3,150
Total factory overhead	$64,040	$57,200
Total manufacturing costs   [Direct material used + Direct labor + Total factory overhead]	$135,340	$162,600
Add: Beginning work in Process inventory	$17,800	$20,400
Total Cost of work in Process	$153,140	$183,000
Less: Ending work in process inventory	$24,700	$21,800
Cost of Goods Manufactured	$128,440	$161,200

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Schedule of Cost of Goods Sold
	Garcon Company	Pepper Company
Beginning Finished goods inventory	$13,500	$17,050
Add: Cost of Goods Manufactured            (Refer schedule of cost of goods manufactured)	$128,440	$161,200
Cost of Goods available for sale	$141,940	$178,250
Less: Ending Finished goods inventory	$19,550	$13,700
Cost of Goods Sold	$122,390	$164,550

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Garcon Company
Income Statement
For Year Ended December 31, 2019
Sales	$241,530
Less: Cost of Goods Sold         (Refer schedule of cost of goods sold)	$122,390
Gross Margin	$119,140
Operating Expenses
General and Administrative Expenses	$32,500
Selling expenses	$62,400
Income (Loss) before tax    [$119,140 - $32,500 - $62,400]	$24,240

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Pepper Company
Income Statement
For Year Ended December 31, 2019
Sales	$315,010
Less: Cost of Goods Sold            (Refer schedule of cost of goods sold)	$164,550
Gross Margin	$150,460
Operating Expenses
General and Administrative Expenses	$53,000
Selling expenses	$52,300
Income (Loss) before tax    [$150,460 - $53,000 - $52,300]	$45,160

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Garcon Company
Partial Balance Sheet
As of December 31, 2019
Cash		$30,000
Accounts Receivable, net		$15,400
Inventories:
Raw material inventory         [Ending]	$7,300
Work-in process inventory    [Ending]	$24,700
Finished goods inventory      [Ending]	$19,550
		$51,550
Total current assets		$96,950

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Pepper Company
Partial Balance Sheet
As of December 31, 2019
Cash		$24,200
Accounts Receivable, net		$24,200
Inventories:
Raw material inventory         [Ending]	$9,800
Work-in process inventory    [Ending]	$21,800
Finished goods inventory      [Ending]	$13,700
		$45,300
Total current assets		$93,700

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Prime Costs
	Garcon Company	Pepper Company
Direct Materials:
Beginning raw materials inventory	$11,900	$10,800
Raw materials purchases	$47,500	$61,000
Raw materials available for use	$59,400	$71,800
Less: Ending raw materials inventory	$7,300	$9,800
Raw Materials used    (a)	$52,100	$62,000
Direct labor                      (b)	$19,200	$43,400
Total prime costs              (a + b)	$71,300	$105,400

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Conversion costs
	Garcon Company	Pepper Company
Direct labor                                                     (a)	$19,200	$43,400
Factory Overhead:
Rental cost on factory equipment	$33,000	$22,750
Factory utilties	$11,550	$16,000
Factory supplies used	$12,100	$5,600
Indirect labor	$1,850	$9,700
Repairs - factory equipment	$5,540	$3,150
Total factory overhead                                  (b)	$64,040	$57,200
Total conversion costs                                 (a + b)	$83,240	$100,600