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 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

Answer 1

1. Cost of goods manufactured

Particulars	Garcon	Pepper
DM:
Beg inventory of RM	9600	10,650
+ Material purchased	38,500	67,500
RM available for use	48,100	78,150
- Ending inventory of RM	(5600)	(8000)
DM used	42,500	70,150
DL	23,800	36,600
MOH:
Rental cost on factory equipment	34,000	24,850
Factory utilities	14,700	12,000
Factory supplies used	9700	5800
Indirect labour	1500	7780
Repair factory equipment	4940	2950
Total MOH	64,840	53,380
Total Manufacturing costs	131,140	160,130
+ Beg WIP	17800	21300
Total cost of WIP	148,940	181,430
- Ending WIP	(26,200)	(18,800)
COGM	122,740	162,630

2. Cost of goods sold

Particulars	Garcon	Pepper
Beg inventory of FG	13,200	17,050
+ COGM	122,740	162,630
Cost of goods available for sale	135,940	179,680
- end inventory of FG	(19,400)	(14,400)
COGS	116,540	165,280

1(a). Income statement

Particulars	Garcon	Pepper
Sales	220,530	310,010
Less COGS	(116,540)	(165,280)
GP	103,990	144,730
Operating expenses :-
General & Adm expenses	21,500	59,000
Selling expenses	58,000	57,400
Total operating expenses	79,500	116,400
Income before tax	24,490	28,330

1(b). Partial Balance sheet

Particulars	Garcon	Pepper
Current Assets
Cash	27,000	19,700
Account receivables	14,400	20,700
Inventories:
Ending RM inventory	5600	8000
Ending WIP inventory	26,200	18,800
Ending FG inventory	19,400	14,400
Total Current Assets	92,600	81,600