Question

7. ! 12.5 points Required information [The following information applies to the questions displayed below.) The following data is provided for Garcon Company and Pepper Company. eBook References Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory (direct materials) Rental cost on factory equipnent 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 $ 13,000 16,700 7,200 31,500 20,400 19, 250 26,500 5,700 14,250 12,700 28,500 1,850 6,500 42,500 60,800 222,030 31,000 267,500 16,600 Pepper Company $ 19,300 19,650 13,800 24,250 36,200 13,500 20,000 10,000 17,000 5,800 44,000 7,660 3,750 60,500 47,800 337,510 16,200 133,825 21,450 Required: 1. Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year end December 31, 2019

Answer 1

1. COST OF GOODS MANUFACTURED

S.NO. PARTICULARS Garcon Company $ Pepper Company $ 1 7,200 42,500 49,700 5,700 44,000 20,400 13,800 60,500 74,300 10,000 64,300 36,200 4 7 Direct Materials Beginning raw materials inventory 2 Add: Purchase of direct materials 3 Raw materials available for use (1+2) Less: Ending raw materials inventory 5 Direct Materials used (3-4) 6 Direct Labor Factory Overhead Indirect Labor 8 Factory utilities 9 Rental cost on factory equipment 10 Factory supplies used 11 Repairs factory equipment 12 Total Factory overheads (7+8+9+10+11) 13 Total Manufacturing Costs (5+6+12) 14 Add: Beginning work in process inventory 15 Total cost of work in process (13+14) 16 Less: Ending work in process inventory 17 Cost of goods manufactured (15-16) 1,850 14,250 31,500 12,700 6,500 66,800 131,200 16,700 147,900 26,500 121,400 7,660 17,000 24,250 5,800 3,750 58,460 158,960 19,650 178,610 20,000 158,610

2. COST OF GOODS SOLD

S.NO. PARTICULARS 1 2 3 4 5 Beginning finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale (1+2) Less: Ending finished goods inventory Cost of goods sold (3-4) Garcon Company $ 13,000 121,400 134,400 19,250 115,150 Pepper Company $ 19,300 158,6101 177,910 13,500 164,410)

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