Question

Requirea information 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 12,800 16,200 8,700 28,500 23,400 18,800 23,800 6,400 10,500 10,000 33,500 2,400 6,740 44,500 59,600 208,530 23,000 272,500 16,800 Pepper Company $ 17,950 21,000 9,750 23,500 35,800 14,400 20,800 8,200 12,750 3,800 52,000 9,520 3,400 65,000 51,700 332,510 16,200 178,825 22,700

Answer 1

Cost of goods sold:

	Garcon	Pepper
Beginning raw material	$8,700	$9,750
Raw material purchases	44,500	65,000
Raw material available	53,200	74,750
Ending raw material	(6,400)	(8,200)
Direct material used	46,800	67,550
Direct labor	23,400	35,800
Factory overhead:
Rental cost on factory equipment	28,500	23,500
Factory utilities	10,500	12,750
Factory supplies	10,000	3,800
Indirect labor	2,400	9,520
Repairs-Factory equipment	6,740	3,400
Total factory overhead	58,140	52,970
Total manufacturing cost	128,340	156,320
Beginning work in process	16,200	21,000
Ending work in process	(23,800)	(20,800)
Cost of goods manufactured	120,740	156,520
Beginning finished goods	12,800	17,950
Ending finished goods	(18,800)	(14,400)
Cost of goods sold	$114,740	$160,070

1.

GARCON COMPANY Income Statement For Year Ended December 31, 2017
Sales		$208,530
Cost of goods sold		114,740
Gross profit		93,790
Operating expenses:
General and administrative expenses	$33,500
Selling expenses	59,600
Total operating expenses		93,100
Income (loss) before tax		$690

2.

PEPPER COMPANY Income Statement For Year Ended December 31, 2017
Sales		$332,510
Cost of goods sold		160,070
Gross profit		172,440
Operating expenses:
General and administrative expenses	$52,000
Selling expenses	51,700
Total operating expenses		103,700
Income (loss) before tax		$68,740

3.

GARCON COMPANY Partial Balance Sheet As of December 31, 2017
Cash		$23,000
Accounts receivable, net		16,800
Inventories:
Raw material	$6,400
Work in process	23,800
Finished goods	18,800
		49,000
Total current assets		$88,800

4.

PEPPER COMPANY Partial Balance Sheet As of December 31, 2017
Cash		$16,200
Accounts receivable, net		22,700
Inventories:
Raw material	$8,200
Work in process	20,800
Finished goods	14,400
		43,400
Total current assets		$82,300