Question

The following data is provided for Garcon Company and Pepper Company Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory (direct materials) 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 (indirect materials) General and administrative expenses Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses Sales Cash Factory equipment, net Accounts receivable, net Garcon Company $ 12,400 14,700 7,900 33,750 24,400 20,750 26,800 5,800 9,450 11,500 23,500 1,950 4,940 39,500 58,800 204,30 20,000 217.500 15,200 Pepper Company $ 19,300 23,850 9,600 23,800 42.200 14,200 17,800 7,200 13,500 5,200 48,500 7,840 2,250 61,000 48,400 342,510 16,200 178,825 24,700 Exercise 14-8 Cost of goods manufactured and cost of goods sold computation LO P1, P2 Required: 1. Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year ended December 31, 2019 2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2019.

Answer 1

Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2019 Garcon Pepper Company Company Direct materials Beginning raw materials inventory (direct materials) $7,900 $9,600 Add: Raw materials purchases $39,500 $61,000 Raw materials available for use $47,400 $70,600 Less: Ending raw materials inventory $5,800 $7,200 Direct materials used (a) $41,600 $63,400 Direct labor cost (6) $24,400 $42,200 Factory overhead Rental cost on factory equipment $33.750 $23.800 Factory utilities $9,450 $13,500 Factory supplies used (Indirect materials) $11,500 $5,200 Indirect labor $1,950 $7,840| Repairs-Factory equipment $4,940 $2,250 Total factory overhead (c) $61.590 S52.590 Total manufacturing costs (a+b+c) $127,590 $158,190 Add: Beginning work in process inventory $14.700 $23,850 Total cost of work in process $142,290 $182,040 Less: Ending work in process inventory $26.800 $17,800 Cost of goods manufactured $115,490 $164,240 Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2019 Garcon Pepper Company Company Beginning finished goods inventory $12.400 $19,300 Add: Cost of goods manufactured $115,490 $164,240 Cost of goods available for sale $127.890 $183,540 Less: Ending finished goods inventory $20,750 $14,200 Cost of goods sold $107,140 $169,340