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, $ 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 expense Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses Sales Cash Factory equipment, net Accounts receivable, Garcon Company 12,000 18,100 10,400 27,500 24,800 19,550 26,800 7,600 11,550 9,100 Pepper Company $ 19,600 22,650 9,300 26, 350 35,400 13,800 19,400 8,000 13,500 5,700 43,000 9,580 1,550 66,000 46,300 340,010 17,700 157,825 22,950 2,250 4,820 37,500 57,200 226,530 28,000 237,500 16,600 Exercise 14.9 Preparing financial statements for a manufacturer LO C4, P2

Answer 1

$ Garcon Company Income Statement For the Year Ended December 31, 2017 Sales Cost of Goods sold Gross Profit Operating Expenses General and administrative expenses Selling expenses Total Operating expenses Income Before Tax 226,530 104.070 122,460 12- $ S 27,500 57,200 84,700 37,760 Garcon Company Partial Balance sheet As on December 31, 2017 28,000 16,600 Cash Accounts Receivables, net Inventories Ending Raw materials Inventory Ending Work in process Inventory Ending Finished Goods Inventory Total Current assets 7,600 26.800 19,550 $ 53,950 98.550

$ Pepper Company Income Statement For the Year Ended December 31, 2017 Sales Cost of Goods sold Gross Profit Operating Expenses General and administrative expenses Selling expenses Total Operating expenses Income Before Tax 340,010 168,430 171,580 43,000 46,300 89,300 82.280 Pepper Company Partial Balance sheet As on December 31, 2017 S IS 17,700 22.950 Cash Accounts Receivables, net Inventories Ending Raw materials Inventory Ending Work in process Inventory Ending Finished Goods Inventory Total Current assets 8,000 19,400 13.800S 41.200 81.850

Schedule Cost of goods Manufactured Schedule For the Year ended December 31,2017 Particulars Garcon Company pepper company Direct Material: Raw Material inventory beginning $ 10.400 S 9.300 Add: Raw materials purchases S 37,500S 66,000 Raw materials available 47,900 $ 75,300 Less: Raw materials inventory Ending S 7,600S 8.000 Direct Materials Used $ 40,300 $ 67,300 Cost of Direct Labour 24.800S 35.400 Factory Overhead Rental cost on factory equipment 27,500S 26,350 Factory utilities 11,550 $ 13,500 Factory supplies used 9,100 $ 5,700 Indirect Labor 2.250 $ 9,580 Repairs - Factory equipment 4,820 S 1,550 Total Factory overhead 55,220 56.680 Total Manufacturing Costs $ 120,320 S 159,380 Add: Beginning work in process 18.100 S 22,650 Total Cost of Goods in Process 138,420 S 182.030 Less: Ending work in process $ 26,800S 19,400 Cost of goods Manufactured S 111,620S 162,630

Schedule Cost of goods Sold For the Year ended December 31,2017 Particulars Garcon Company Pepper Company Finished goods inventory, Beginning $ 12,000 $ 19,600 Add: Cost of Goods manufactured 111.620 S 162,630 Cost of goods available for sale $ 123,620 $ 182.230 Less: Finished goods inventory, Ending $ 19,550 $ 13.800 Cost of Goods Sold S 104,070 S 168,430