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 (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 $ 13,600 15,700 7,900 30, 250 23,400 18,350 25, 300 7,200 9,600 9,700 30, 500 1,950 7, 700 44,500 52,400 214,530 25,000 237,500 14,200 Pepper Company $ 16,900 22,950 12, 150 25,600 40,200 14,900 19,800 8, 600 17,750 5,200 45,000 8,500 2,750 52,500 48,400 312, 510 22,700 142,825 22,450 Required:

Answer 1

Solutions DATE PAGE steht @ Cow Preparation of Income statement for Garcon company is Garcon Company Income statement. Particulas Amoont Amont (A) Sales lessi Eebendes R 14550 7900 OS opening stock of Raw Material Add! Raw Material purchased 244500 Lessi Closing stock of Paw Material - 7800 Raw Material Consumed 45200 or Direct Labour. 23400 Prime Cost: 68600 Addi factory cen heads Rental cost on Pectory Equipmenil 30850 - Factory Utilities 9600 → factory supplies used 9700 Indirect labour 1950 → Repairs -factory Equipment Kontakta obszy foot Total 127800 Add: Beginning work im Pongress inventay 15700 Less's Cloting Work in Progress 25300) cost of goods manufactured 518200 Add: General and administrative Expenses Cost of Production 148700 7700 30500

DATE PAGE Cool less! Les 13600 (18350) Adal: opening finished goods closing finished goodle Add! Selling Expenses la (B5) MoTotal cost / cost of goods sold c.) Het Income (ATB) 58400 196350 T 18180 ② Preparation of Income statement of Pepper Company - Pepper Company Income statement hul Particulars Amount. 312510 (A.) Sales Less Expenses, com opening stock of Raw Material Add! Raw Material purchased Closing stock of Raw Material Raw Material consumed Addi Direct labour. Prime Cost. Add factory overheads → Rent a factory Equipment Factory Utilities ₃. Pactory supplies used Indirect labour > Rebain-fuctory Equipment 'Total 19150 52500 ( 8600) 56050 40200 Do 96950 25600 17750 5800 8500 2750 156050

DATE PAGE 122950 (19800 ) 159200 145000 cost of manufactured goods Add! Begiming work im Pongress (9.less' closing' work. In-Progress o our Add: Genedal and administrative Expenses cost of Production to 204200 1) 6900 04 Addopening finding finished goods (14900) leos! Elosing flonished goody Add: selling Expenses ( B-) ( Total cost /costof guod soldi. 254600 Net Income CA-B) 57910 48400

DATE PAGE stepta Preparation of the current assets section of the balance sheet for each company @ Partial Balance sheet for aarcon company Garcon Company Paatial Balance sheet Particular lovend Amount 95000 14900 D Assets @ Current Asset au Cash Accounts Receivable. Pnventores (Closing balance) Raw Material • work-im- Porogpress Finished goods, 1900 25 900 18350 90050 Total Current Assets

DATE PAGE Pasttal Balance sheet for Repper Company dit Pepper Company partial Balomce Sheet Amount 22700 22450 particular (I) Acrets @ Current Asset Cash to Account Receivable Puwentonies (Closing salomce) Raw Material Wook-in-lagres a finished goods Total Current Assets 8600 19800 14goo 88450