Question

Required information [The following information applies to the questions displayed below.] The following data is provided for Garcon Company and Pepper Company. Garcon Company Pepper Company Beginning finished goods inventory $ 13,300 $ 17,350 Beginning work in process inventory 15,300 21,150 Beginning raw materials inventory 7,100 10,800 Rental cost on factory equipment 29,000 23,800 Direct labor 20,000 42,200 Ending finished goods inventory 18,950 16,800 Ending work in process inventory 23,500 21,400 Ending raw materials inventory 6,800 7,600 Factory utilities 11,400 16,000 Factory supplies used 10,900 5,300 General and administrative expenses 32,500 44,000 Indirect labor 1,700 8,920 Repairs—Factory equipment 4,940 2,250 Raw materials purchases 42,000 69,500 Selling expenses 60,400 52,000 Sales 238,530 330,010 Cash 24,000 22,700 Factory equipment, net 222,500 127,825 Accounts receivable, net 14,000 23,950 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, 2017. 2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2017. This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next Visit question mapQuestion 33 of 33 Total 33 of 33 Prev

Answer 1

SOLUTION

A. Cost of goods manufactured-

Particulars	Garcon Company ($)	Pepper Company ($)
Direct materials
Beginning raw materials inventory	7,100	10,800
Add: Raw materials Purchased	42,000	69,500
Raw materials available for use	49,100	80,300
Less: Ending raw materials inventory	(6,800)	(7,600)
Direct materials used(a)	42,300	72,700
Direct labor(b)	20,000	42,200
Factory overhead
Rental cost on factory equipment	29,000	23,800
Factory utilities	11,400	16,000
Factory supplies used	10,900	5,300
Indirect labor	1,700	8,920
Repairs factory equipment	4,940	2,250
Total factory overhead(c)	57,940	56,270
Total Manufacturing cost(a+b+c=d)	120,240	171,170
Add: Beginning work in progress inventory (e)	15,300	21,150
Total cost of work in process(d+e=f)	135,540	192,320
Less: Ending work in progress inventory(g)	(23,500)	(21,400)
Cost of goods manufactured (f-g)	112,040	170,940

B. Cost of goods sold-

Particulars	Garcon Company ($)	Pepper Company ($)
Beginning finished goods Inventory	13,300	17,350
Add: Cost of goods manufactured	112,040	170,940
Cost of goods available for sale	125,340	188,290
Less: Ending finished goods Inventory	(18,950)	(16,800)
Cost of goods sold	106,390	171,490