Question

Required information The following information applies to the questions displayed below) The following data is provided for Garcon Company and Pepper Company, Garcon Company Beginning finished goods inventory $ 14,000 Beginning work in process inventory 16,700 Beginning raw materials inventory (direct materials) 9,500 Rental cost on factory equipment 27,500 Direct labor 24,200 Ending finished goods inventory 21,200 Ending work in process inventory 24,700 Ending raw materials inventory 5,500 Factory utilities 13,350 Factory supplies used indirect materials) 10,000 General and administrative expenses 33,000 Indirect labor 1.850 Repairs-Factory equipment 7,700 Raw materials purchases 42,000 Selling expenses 63,200 Sales 247.530 Cash 30,000 Factory equipment, net 272,500 Accounts receivable, net 14,400 Pepper Company $ 18,550 22,150 12.900 26,050 37.000 13,600 17,000 8,200 16,000 4.600 51,800 8.920 3,550 68,000 46,600 305,010 15,700 151,825 22,700 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, 2019 2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2019 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year ended December 31, 2019 Pepper Garcon Company Company Durac materials Raw materiaaliable for use Direct materials used Prey 1 of 7 N e here to search o ві е E W

Answer 1

Solution steet4 what is cost of goods manufactured for manufacturing company o cost of goods manufactured includes all those Ainevat costs which are meurred in the manufacturing of a gene products These are Direct Material used, Srect labor and manyfecturing overhead or factory overheads fost of manufactured goods are is also called production cost of the goods that were produced during an accounting period.

stebe calentation of cost of goods manufactured for both Garcon company to & Pepper company for the year ended 31 Dec, 2019, 9500 (5500) 72700 Particular sto sensor to arcon Pepper isies otrroso company company opening stock Raw Material 1 12goo Add: Raw Material Puschased 42000 68000 Less: closing stock of Raw ( 8200) Material Raw Material consumed 46000 Add! Direct labor 24 200 | 87000 Adel: Factory overheads Manufacturing over headsi? La Rental costdh factory equipment 27500 Brod factory supplies used 10000 Pndirect labon R990 Refaire factory equipment 7700 3550 168820 Total Manufacturing Sort 16700 Begnining work-in-ho Progress leasi closing Ending work- (24700) (17000) in- Progress 174170 of goods manufactured 13950 26050 16000 4600 factory utilities 1850 130600 22950 Add! 129600 (A) Cost

9 spoort step- what is cost of goods sold for a man manufacturing Company cost of goods sold includes those rest cost which are incurred for producing the goods sold by manufacturing Company, It includes, Direet Material, Direct labor, Ontha manufacturing overheads and to administrative owerheads but it does not inckede selling & distribution quen beads , Neste A manufacturing company includes all direct overheads in the cost of goods sold. But a detailer fora Doading company only Happroval Includes direct cost in the calculation of cost of goods sold manufacturing

PAGE Step-4 calculation both Garcon company & Pepper Company of cost of goods sold for for the year ended ended December 31, 201g. Peppes Company 174170 particular Garcon Company Cost of manufactured goods of calculated in stebro) 1282600 Add: General and administrative 33000 Expenses cost of production 155600 Add! obening finished goods less! Closing finished goods (21200) cost of goods sold 51ooo 14000 025170 18550 (13600) 230120 148400