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 $ 13,000 16,800 10,600 34,750 21,000 20,600 22,900 7,600 9, 150 13,600 28,500 2.200 5,900 44,500 60,800 201,030 33,000 227,500 15,800 Pepper Company $ 16,300 22,500 9, 150 23,500 38,200 13, 100 21,400 7,600 15,000 5,800 46,000 8,380 3,000 62,500 47,500 312,510 18,200 145, 825 19,450 Required: 1. Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Com December 31, 2019 2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Compan December 31, 2019. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for December 31, 2019. Garcon Company $ 13,000 Pepper Company 16,300 Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Cost of goods sold $ 0 $ 0 (Required 1 Required 2 )

Answer 1

Ans. 1	COST   OF   GOODS   MANUFACTURED SCHEDULE
		GARSON COMPANY		PEPPER COMPANY
	Particulars	Amount	Amount	Amount	Amount
	Direct materials
	Beginning raw materials inventory	$10,600		$9,150
	Add: Purchase of direct materials	$44,500		$62,500
	Raw materials available	$55,100		$71,650
	Less: Ending raw materials inventory	-$7,600		-$7,600
	Direct materials used (A)		$47,500		$64,050
	Direct labor (B)		$21,000		$38,200
	Manufacturing overhead applied:
	Indirect labor	$2,200		$8,380
	Factory utilities	$9,150		$15,000
	Rental cost on factory equipment	$34,750		$23,500
	Factory supplies used	$13,600		$5,800
	Repairs factory equipment	$5,900		$3,000
	Total manufacturing overhead ©		$65,600		$55,680
	Total manufacturing costs (A+B+C)		$134,100		$157,930
	Add: Beginning Work in process inventory		$16,800		$22,500
	Less: Ending Work in process inventory		-$22,900		-$21,400
	Cost of goods manufactured		$128,000		$159,030
	*In the Statement of cost of goods manufactured, we need to include all manufacturing costs whether
	these are direct (materials and labor) or indirect (factory overhead costs).
Ans. 2	COST   OF   GOODS   SOLD SCHEDULE
		GARSON COMPANY	PEPPER COMPANY
	Particulars	Amount	Amount
	Beginning finished goods inventory	$128,000	$159,030
	Add: Cost of Goods Manufactured	$13,000	$16,300
	Cost of goods available for sale	$141,000	$175,330
	Less: Ending finished goods inventory	-$20,600	-$13,100
	Cost of goods sold	$120,400	$162,230
	*The calculated amount of cost of goods manufactured will be used in this part for the calculation
	of cost of goods sold.
	*Sales, selling general and administrative expenses are the part of income statement.
	*Cash, factory equipment and accounts receivables are the part of Balance Sheet.
	*The cost of goods sold would be used in the calculation of gross margin in income statement.