Question

Using the following data from both Garcon Company and Pepper Company for the year enden December 31, 2019, compute (1) the cost of goods manufactured and (2) the cost of goods sold Exercise 18-8 Cost of goods manufactured and cast of goods sold computation P1 P2 Garcon Co. Pepper Co. Beginning finished goods inventory..... Beginning work in process Imentory Beginning raw materialinestory diet materials)... Rental cost on factory equipment Direct labor... Erding finished goods inventory Ending work in process inventory ............... Ending taw materials inventory....... Factory utilities Factory supplies used indirect materials). General and administrative expenses Indirect labor... Repairs-Factory equipment.... Raw materials purchases ... Selling expenses .... Sales $ 12,000 14,500 7.250 27.000 19,000 17.650 22,000 5,300 9,000 8.200 21,000 1.250 4,780 33,000 50,000 195,030 20,000 212,500 13,200 $ 16,450 19.950 9,000 22,750 35,000 13,300 16,000 7.200 12,000 3,200 43,000 7,660 1,500 52,000 46,000 290,010 15,700 115,825 19,450 Check Garcon COGS 591030 Factory equipment, net Accounts receivable,

Answer 1

1) Calculation of Cost of goods manufactured

	Garcon Co.	Pepper Co.
Direct materials:
Beginning raw materials inventory	$7250	$9000
Add: Raw materials purchases	33000	52000
Raw materials available for sale	40250	61000
Less: Ending raw materials inventory	(5300)	(7200)
Direct materials used	34950	53800
Direct labor	19000	35000
Factory overhead:
Rental cost of factory equipment	27000	22750
Factory utilities	9000	12000
Factory supplies used	8200	3200
Indirect labor	1250	7660
Repairs- Factory equipment	4780	1500
Total factory overhead	50230	47110
Total manufacturing costs	104180	135910
Add: Beginning work in process inventory	14500	19950
	118680	155860
Less: Ending work in process inventory	(22000)	(16000)
Cost of goods manufactured	$96680	$139860

b) Calculation of Cost of goods sold

	Garcon Co.	Pepper Co.
Beginning finished goods inventory	$12000	$16450
Add: Cost of goods manufactured	96680	139860
Cost of goods available for sale	108680	156310
Less: Ending finished goods inventory	(17650)	(13300)
Cost of goods sold	$91030	$143010