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

Statement Showing Cost of Goods Mnufactured
	Garcon Company	Pepper Company
Direct Materials
Beginning Raw Material Inventory	$7,600	$14,100
Add: Raw Materials Purchased	$47,000	$58,500
Raw Material Available For Use	$54,600	$72,600
Less: Ending Raw Material Inventory	-$6,900	-$9,000
Direct Material Used	$47,700	$63,600
Direct Labor	$23,400	$39,400
Factory Overhead
Factory Utilities	$9,750	$16,500
Rental Cost On Factory Equipment	$28,250	$23,950
Factory Supplies Used	$9,400	$4,100
Indirect Labor	$1,250	$9,340
Repairs - Factory Equipment	$7,820	$3,800
Total Manufacturing Cost	$127,570	$160,690
Add: Beginning Work In Process Inventory	$17,200	$20,250
Total Cost Of Work In Process	$144,770	$180,940
Less: Ending Work In Process Inventory	-$23,200	-$17,400
Cost Of Goods Manufactured	$121,570	$163,540
	Garcon Company	Pepper Company
Cost of goods manufactured	$121,570	$163,540
Add: Beginning finished goods inventory	14400	16900
Cost of goods available for sale	$135,970	$180,440
Less: Ending finished goods inventory	-19850	-16600
Cost of goods sold	$116,120	$163,840
Garcon Company
Income Statement
For Year December 31, 2017
Sales		$204,030
Less: Cost of goods sold		($116,120)
Gross profit		$87,910
Operating expenses
General and administrative expense	$31,500
Selling expense	$57,200
Total operating expense		$88,700
income (loss) before tax		($790)
Pepper Company
Income Statement
For Year December 31, 2017
Sales		$305,010
Less: Cost of goods sold		($163,840)
Gross profit		$141,170
Operating expenses
General and administrative expense	$57,500
Selling expense	$55,900
Total operating expense		$113,400
income (loss) before tax		$27,770

Garcon Company
Balance Sheet (partial)
As at December 31, 2017
Cash	$33,000
Accounts receivable	$14,800
Inventories:
Finished goods inventory	$19,850
Work in process inventory	$23,200
Raw material inventory	6900
Total current assets	$97,750
Pepper Company
Balance Sheet (partial)
As at December 31, 2017
Cash	$16,700
Accounts receivable	$23,950
Inventories:
Finished goods inventory	$16,600
Work in process inventory	$17,400
Raw material inventory	9000
Total current assets	$83,650