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 $ 13,200 17,800 9,600 34,000 23,800 19,400 26,200 5,600 14,700 9,700 21,500 1,500 4,940 38,500 58,000 220, 530 27,000 262,500 14,400 Pepper Company $ 17,050 21,300 10,650 24,850 36,600 14,400 18,800 8,000 12,000 5,800 59,000 7,780 2,950 67,500 57,400 310,010 19,700 130,825 20, 700

Answer 1

$ Statement of cost of goods manufactured Direct materials: Garcon Pepper Beginning materials Inventory $ 9,600 $ 10,650 Raw materials purchases $ 38,500 $ 67,500 Materials available $ 48,100 $ 78,150 Less:ending materials inventory $ -5,600 $ -8,000 Direct materials used $ 42,500 $ 70,150 Direct labour used $ 23,800 $ 36,600 Factory overhead Indirect labour $ 1,500 $ 7,780 Factory Utility $ 14,700 $ 12,000 Factory supplies used $ 9,700 $ 5,800 Rental cost on factory equipment $ 34,000 $ 24,850 Repair factory equipment $ 4,940 $ 2,950 Total factory overhead $ 64,840 $ 53,380 Total manufacturing costs $1,31,140 $ 1,60,130 Add:Beginning work in process Inventory $ 17,800 $ 21,300 Total manufactuiing costs to account for $ 1,48,940 $ 1,81,430 Less:ending work in process inventory $ -26,200 $ -18,800 Cost of goods manufactured $ 1,22,740 $ 1,62,630 Statement of cost of good sold Garcon Pepper Finished goods Inventory $ 13,200 $ 17,050 Add:Cost of good manufactured $ 1,22,740 1,62,630 Cost of goods available for sale $ 1,35,940 $ 1,79,680 Less:Ending Finished goods $ -19,400 $ -14,400 Cost of goods sold $ 1,16,540 $ 1,65,280