Question

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 $ 13,800 15,300 7,800 34,250 24,400 17,450 24,700 7,700 10,050 9,700 33,000 1,500 5,420 43,000 61,200 219,030 27,000 222,500 15, 200 Pepper Company $ 16,150 19,950 10,200 22,000 38,200 14,200 21,800 9,400 16,750 5,400 56,500 7,780 2,350 62,000 55,300 300,010 19,700 160, 825 20,200

Answer 1

Statement of Cost of Goods Manufactured

Particulars	Garcon Company	Pepper Company
Direct Materials
Beginning Raw Material Inventory	7,800	10,200
Add: Raw Material Purchased	43,000	62,000
Raw Materials available for use	50,800	72,200
Less: Raw Materials Ending Inventory	7,700	9,400
Direct Materials Used	43,100	62,800
Direct Labour	24,400	38,200
Factory Overhead
Rental Cost on Factory Equipment	34,250	22,000
Factory Utilities	10,050	16,750
Factory Supplies Used	9,700	5,400
Indirect Labour	1,500	7,780
Repairs Factory Equipment	5,420	2,350
Total Factory Overheads	60,920	54,280
Total Manufacturing Costs	128,420	155,280
Add: Work in Process Opening Inventory	15,300	19,950
Total Costs of Work in Process	143,720	175,230
Less : Work in Process Ending Inventory	24,700	21,800
Costs of Goods Manufactured	119,020	153,430

Total Factory Overhead = Sum of all items Listed in Factory Overhead

Total Manufacturing Costs = Total Factory Overhead + Direct Labour + Direct Materials Used

Other Formulas are provided in Table itself.

Statement of Cost of Goods Sold

Particular	Garcon Company	Pepper Company
Costs of Goods Manufactured	119,020	153,430
Add : Finished Goods Opening Inventory	13,800	16,150
Cost of Goods Available for Sale	132,820	169,580
Less : Finished Goods Ending Inventory	17,450	14,200
Cost of Goods Sold	115,370	155,380