Question

Required Information Use the following Information for the Exercises below. [The following Information applies to the questions displayed below! The following data is provided for Garcon Company and Pepper Company Pepper company $ 16,45e 19,95€ 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 $ 12, eee 14,500 7,250 27, 19.00 17,65e 22,000 5,3ee 9,000 3,200 21,000 1,250 4.750 33.0 Se, eee 195,03 20,000 212.50 13,200 22,75e 35,00 13, 380 16.ee 7,zee 12,000 3.200 43, eee 7,660 1.5ee 52,000 290, ese 15,700 115,825 19,450 Exercise 14-9 Preparing financial statements for a manufacturer LO C4, P2 Required: - Prepare income statements for both Garcon Company and Pepper Company 1-b. Prepare the current assets section of the balance sheet for each company Complete this question by entering your answers in the tabs below. Re Garcon 1 Pepper R 18 Garcon Red 18 Pepper Prepare the income statement for Garcon Company. GARCON COMPANY For Year Ended December 31, 2017 ere to search o te ô **

Answer 1

1			Income statement
						Garcon company	Pepper company
	Sales					195030	290010
	Less: Cost of goods sold				(Note:1)	91030	143010
	Gross profit					104000	147000
	Less: Operating expenses
	General and administrative expenses					21000	43000
	Selling expenses					50000	46000
	Total operating expenses					71000	89000
	Net income					33000	58000
	Note:1
	Cost of goods sold
						Garcon company		Pepper company
						$	$	$	$
	Beginning raw materials inventory					7250		9000
	Add: Raw materials purchases					33000		52000
						40250		61000
	Less: Ending raw materials inventory					5300		7200
	Direct materials used						34950		53800
	Direct labor						19000		35000
	Factory overhead:
	Rental cost on factory equipment						27000		22750
	Factory utilities						9000		12000
	Factory supplies used						8200		3200
	Indirect labor						1250		7660
	Repairs-Factory equipment						4780		1500
	Total manufacturing cost						104180		135910
	Add: Beginning work in process inventory						14500		19950
	Total manufacturing cost to account for						118680		155860
	Less: Ending work in process inventory						22000		16000
	Cost of goods manufactured						96680		139860
	Add: Beginning finished goods inventory						12000		16450
							108680		156310
	Less: Ending finished goods inventory						17650		13300
	Cost of goods sold						91030		143010
2			Partial balance sheet
						Garcon company		Pepper company
	Current assets:
	Cash						20000		15700
	Accounts receivable,net						13200		19450
	Inventories
	Raw materials inventory					5300		7200
	Work in process inventory					22000		16000
	Finished goods inventory					17650	44950	13300	36500
	Total current assets