Question

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 (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 $ 13,500 18,990 7,380 33,880 21,200 18,800 25,980 6,500 13,650 13,300 29,080 2,080 7,820 47,000 61,280 208,530 24,000 272,5ee 15,800 Pepper Company $ 17,280 23,700 10,650 24,789 41,809 16,600 19,400 8,000 15,80 5,989 49,800 8,140 3,300 61,5ee 57,1ee 327,519 21,200 148,825 20,780

Answer 1

$ 10, 650 $ 61, Soo Cost of goods manefactured Garcon Pepper Company company Direct materials Beginning raw materials inventory $ 7,300 Add: Raw materials Purchases $ 47,000 Raw materials available for use & 54, 300 $ 72,150 Ending raw materials inventory $ inventory $ 6,500 8,000 Direct materials used $ 47,800 $ 64,150 Direct labor $ 21,200 & 41, 800 Factory overhead Rental cost on factory equipment $ 33,000 $ 24,700 factory utilities $ 13,650 $ 15,000 Factory supplies used & 13, 300 5,900 Indirect labor 2,000 $ 8,140 Repairs - factory equipment $ 7,820 $ 3,300 $ Total factory overhead $ 69,770 57,040 Total manufacturing costs & 138,770 & 162,990 Addi Beginning work in process inventory $ 18,900 $ 23,700 Total cost of work in process $ 157, 670 $ 186,690 Less: Ending work in process inventory & 25,900 $ 19,400 cost of goods many actured $ 131, 770 $ 167, 290

Note : Total manufacturing costs (Direct materials used + Direct labon & Total factory overhead Garcon company: Total manufacturing costs $ 47,800 + $ 21,200 + $ 69, 770 $ 138,770 11 Pepper company Total manufacturing costs = $ 64, 150 + $ 41,800 + $57,040 & 162,990 (9) $ 13,500 cost of goods sold. Carcon compony Pepper company Beginning finished goods inventory Add: Cost of goods manufactured & 131, 770 Cost of goods available for sale 145, 270 Less Ending finished goods inventory & 18,800 $ 16,600 Cost of goods sold $ 126,470 $ 167, 890 $ 17,200 & 167, 290 $ 184, 490 $

Garcon company Income statement for Year Ended December 31, 2019 $ 208, 530 126, 470 02, oto sales Less: Lost of goods sold $ Gross Profit $ Less: operating expenses General and administrative expenses & ѕ selling expenses 29,000 61,200 Income (loss) before tax $ (0,140) Pepper Company Income statement For Year Ended December 31, 2019 sales $ 327, 510 Less: Cost of goods bold. $ 167, 890 4 Gross Profit $ 159, 620 Less: operating expenses General and administrative expenses $ 49,000 Selling expenses 57, 100 Income (loss) before tax $ 53,520

Garion Company Partial Balance Sheet As of December 31, 2019 Cash $ 24,000 Accounts Receivable, net Inventories Raw materials inventory $ 6500 work in process inventory $25,900 finished goods inventory $ 18,800 $ 15,800 & 51,200 $ 91,000 Total current assets Pepper Company Partial Balance Sheet A AS of December 31, 2019 Cash Accounts Receivable, net Inventories Raw materials inventory & 8,000 work in process inventory $ 19,400 finished goods inventory $ 16, 600 $ 21,200 & 20,700 & 44000 $ 85,900 Total aurrent assets

Add: Raw Total prime costs for both areon company & Pepper company Garcon company Pepper company Direct materials Beginning raw materials inventory & 7,300 $ 10,650 materials purchases & 47,000 & 61,500 Raw materials available for $ 54,300 $ 73,150 Less: Ending raw materials inventory & 6,500 $ 8,000 Direct materials used. $ 47,000 $ 64, 150 Add: Direct labor $ 21,200 41,800 Total prime costs $ 69,000 use $ 105, 950 Total conversion costs for both Garcon company & Pepper Company Garcon company Peppes company Direct labor & 21,200 $ 41,800 factory overhead Rental cost on factory equipment $ 33,000 $ 24, 700 Repairs - factory equipment 7,820 $ 3,300 factory supplies used $ 13,300 $ 5,900 Factory utilities $ 13,650 $ 15,000 Indirect labor 2,000 $ 8,140 69,770 Total factory overhead Total conversion costs 57,040 98,840 $ 90,970 $ $