Question

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 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 14,400 17,200 7,600 28,250 23, 400 19,850 23,200 6,900 9,750 9,400 31,500 1,250 7,820 47,000 57,200 204,030 33,000 257,500 14,800 Pepper Company $ 16,900 20, 250 14,100 23,950 39,400 16,600 17,400 9,000 16,500 4,100 57,500 9,340 3,800 58,500 55,900 305,010 16,700 175, 825 23,950

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	$14,400		$16,900
	Add: Purchase of direct materials	$47,000		$58,500
	Raw materials available	$61,400		$75,400
	Less: Ending raw materials inventory	($6,900)		($9,000)
	Direct materials used (A)		$54,500		$66,400
	Direct labor (B)		$23,400		$39,400
	Manufacturing overhead applied:
	Indirect labor	$1,250		$9,340
	Factory utilities	$9,750		$16,500
	Rental cost on factory equipment	$28,250		$23,950
	Factory supplies used	$9,400		$4,100
	Repairs factory equipment	$7,820		$3,800
	Total manufacturing overhead ©		$56,470		$57,690
	Total manufacturing costs (A+B+C)		$134,370		$163,490
	Add: Beginning Work in process inventory		$17,200		$20,250
	Less: Ending Work in process inventory		($23,200)		($17,400)
	Cost of goods manufactured		$128,370		$166,340
Ans. 2	SCHEDULE   OF   COST   OF   GOODS   SOLD
		GARSON COMPANY	PEPPER COMPANY
	Particulars	Amount	Amount
	Cost of Goods Manufactured	$128,370	$166,340
	Add: Beginning finished goods inventory	$14,400	$16,900
	Cost of goods available for sale	$142,770	$183,240
	Less: Ending finished goods inventory	($19,850)	($16,600)
	Cost of goods sold	$122,920	$166,640
	*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.