Question

Required 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. Garcon Pepper Company $18,850 20,100 11,700 Company $13,600 Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory Rental cost on factory equipment 16,800 11,600 31,000 19,800 21,350 22,000 100 ,ר 13,800 13,000 24,000 1,950 5,900 34,000 52,400 244,530 34,000 287,500 15,000 24,400 42,600 14,200 21,800 9,200 13,500 5,800 46,500 8,440 1,550 55,500 46,900 335,010 20,700 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 136,825 22,450

Answer 1

Ans. 1	SCHEDULE   OF   COST   OF   GOODS   MANUFACTURED
		GARSON COMPANY		PEPPER COMPANY
	Particulars	Amount	Amount	Amount	Amount
	Direct materials:
	Beginning raw materials inventory	$11,600		$11,700
	Add: Purchase of direct materials	$34,000		$55,500
	Raw materials available	$45,600		$67,200
	Less: Ending raw materials inventory	-$7,100		-$9,200
	Direct materials used (A)		$38,500		$58,000
	Direct labor (B)		$19,800		$42,600
	Manufacturing overhead applied:
	Indirect labor	$1,950		$8,440
	Factory utilities	$13,800		$13,500
	Rental cost on factory equipment	$31,000		$24,400
	Factory supplies used	$13,000		$5,800
	Repairs factory equipment	$5,900		$1,550
	Total manufacturing overhead ©		$65,650		$53,690
	Total manufacturing costs (A+B+C)		$123,950		$154,290
	Add: Beginning Work in process inventory		$16,800		$20,100
	Less: Ending Work in process inventory		-$22,000		-$21,800
	Cost of goods manufactured		$118,750		$152,590
Ans. 2	SCHEDULE   OF   COST   OF   GOODS   SOLD
		GARSON COMPANY	PEPPER COMPANY
	Particulars	Amount	Amount
	Cost of Goods Manufactured	$118,750	$152,590
	Add: Beginning finished goods inventory	$13,600	$18,850
	Cost of goods available for sale	$132,350	$171,440
	Less: Ending finished goods inventory	-$21,350	-$14,200
	Cost of goods sold	$111,000	$157,240
	*Sales, selling general and administrative expenses are the part of income statement.
	*The cost of goods sold would be used in the calculation of gross margin in income statement.