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: for both Garcon Company and Pepper Company

Answer 1

1.)			Amount $
		Garcon Company	Pepper Company
	Direct materials
	Beginning raw material inventory	7,900	12,150
	Add: Raw material purchases	44,500	52,500
	Raw materials available for use	52,400	64,650
	Less: Ending raw material inventory	7,200	8,600
	Direct material used	45,200	56,050
	Add: Direct Labor	23,400	40,200
	Total Prime Costs	68,600	96,250
2.)			Amount $
		Garcon Company	Pepper Company
	Direct Labor	23,400	40,200
	Add: Factory overhead
	Rental Cost on Factory Equipment	30,250	25,600
	Factory Utilities	9,600	17,750
	Factory Supplies used	9,700	5,200
	Indirect Labor	1,950	8,500
	Repairs-Factory Equipment	7,700	2,750
	Total Factory overhead	59,200	59,800
	Total Conversion Costs	82,600	100,000