Question

Edit View History Bookmarks People Tab Window Help Am E LAI G loul O AU Urt UO Boo G am E FIS bnd You O Pec udt O Rec wconnect.mheducation.com/flow/connect.html mework Saved (The following information applies to the questions displayed below.) The following data is provided for Garcon Company and Pepper Company. Garcon Pepper Company $ 16,150 19,950 13,650 25,900 36,600 14,900 18,400 7,600 14,500 3,700 44,500 7,720 2,050 68,500 53,500 Company $ 12,900 17,400 8,600 Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory Rental cost on factory equipment Direct labor 29,750 22,400 21,200 24,700 5,900 14,850 13,600 29,000 2,450 7,220 41,000 64,400 240,030 30,000 237,500 14,600 Ending finished goods inventory Ending work in procese 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 :00 ces 290,010 19.200 154,825 23,200 Cash Factory equipment, net Accounts receivable, net Exercise 14-9 Preparing financial statements for a manufacturer LO C4, P2 Required: 1-a. Prepare income statements for both Garcon Company and Pepper Company. 1-b. Prepare the current assets section of the balance sheet for each company. < Prev of 24 16 Next> 27

Answer 1

Garcon Pepper Company Company Direct Materials Beginning Raw Materials Inventory Add: Raw Materials purchases Raw Materials available for use Less: Ending Raw Materials Inventory 8600 13650 41000 68500 82150 49600 7600 5900 Direct Materia ls used 43700 74550 Direct Labor Factory Overhead: Rental Cost on Factory Equipment Factory Utilities Factory Supplies used Indirect Labor Repairs-Factory Equipment Total Factory Overhead Total Manufacturing Costs Add: Beginning Work in Process Inventory Total Cost of Work in Process 22400 36600 29750 25900 14850 14500 13600 3700 7720 2450 7220 2050 67870 53870 133970 165020 17400 19950 151370 1849 70 Less: Ending Work in Process Inventory Cost of Goods Manufactured Add: Beginning Finished Goods Inventory 24700 18400 126670 166570 12900 16150 Cost of Goods Available for Sale 139570 182720 Less: Ending Finished Goods Inventory Cost of Goods Sold 21200 14900 118370 167820

Answer 1-a:

GARCON COMPANY Income Statement For Year Ended December 31, 2017 Sales 240030 Less: Cost of Goods Sold 118370 Gross Profit Operating Expenses Selling Expenses General and Administrative Expenses 121660 64400 29000 Income (loss) before tax 28260 PEPPER COMPANY Income Statement For Year Ended December 31, 2017 Sales 290010 Less: Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses General and Administrative Expenses 167820 122190 53500 44500 Income (loss) before tax 24190

Answer 1-b:

GARCON COMPANY Partial Balance Sheet As of December 31, 2017 Cash 30000 Accounts Receivable, net 14600 Inventories Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Total Current Assets 5900 24700 21200 96400 PEPPER COMPANY Partial Balance Sheet As of December 31, 2017 Cash 19200 Accounts Receivable, net 23200 Inventories Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Total Current Assets 7600 18400 14900 83300