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 $ 13,000 18,300 10,900 33,250 22,800 17,300 26,800 5,800 14,700 12,100 21,500 2,250 6,380 42,000 57,600 235,530 20,000 217,500 14,200 Pepper Company $ 19,450 22,350 11,550 25,000 44,600 17,000 20,600 9,400 13,000 5,900 53,500 8,800 3,950 53,500 57,400 330, 010 19,700 169,825 23,950 Required: 1. Prepare income statements for both Garcon Company and Pepper Company. 2. Prepare the current assets section of the balance sheet for each company. Complete this question by entering your answers in the tabs below. Req 1 Garcon Req 1 Pepper Req 2 Garcon Req 2 Pepper Prepare the income statement for Garcon Company. GARCON COMPANY Income Statement For Year Ended December 31, 2019 0 Operating expenses Income (loss) before tax $ < Req 1 Garcon Req 1 Pepper >

Answer 1

Working: Cost of Goods Manufactured Garcon Pepper Add $ 10,900 $ $ 42,000 $ $ 52,900 $ $ 5,800 $ $ 47,100 $ $ 22,800 $ 11,550 53,500 65,050 9,400 55,650 44,600 less Direct Material :- Beginning Inventory of Raw Material Material purchased Raw material Available for use Ending Inventory of Raw Material Direct Material used Direct Labor Factory Overhead: Rental cost on factory Equipment Factory Utilities Factory supplies used Indirect Labor Repair factory equipment Total Factory Overhead Total Manufacturing cost Beginning Work in Process Total Cost of work in process Ending Work in Process Cost of Goods Manufactured $ 33,250 $ 25,000 $ 14,700$ 13,000 $ 12,100 $ 5,900 $ 2,250 $ 8,800 $ 6,380 $ 3,950 $ 68,680 $ 56,650 $ 138,580$ 156,900 $ 18,300 $ 22,350 $ 156,880 $ 179,250 $ 26,800 $ 20,600 $ 130,080 $ 158,650 Add less Total Manufacturing cost = Direct material + Direct Labor + Factory overhead Cost of Goods sold Add Beginning Inventory Finished Goods Cost of Goods Manufactured Cost of goods available for sale Ending Inventory of Finished Goods Cost of Goods Sold Garcon Pepper $ 13,000 $ 19,450 $ 130,080 $ 158,650 $ 143,080$ 178,100 $ 17,300 $ 17,000 $ 125,780 $ 161,100 less

less $ 235,530 $ 125,780 $ 109,750 Income Statement of Garcon Company Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses:- General & Administrative Expenses selling Expenses Total Operating Expenses Income Before Tax $ 21,500 $ 57,600 $ 79,100 $ 30,650 less less $ 330,010 $ 161,100 $ 168,910 Income Statement of Pepper Company Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses:- General & Administrative Expenses selling Expenses Total Operating Expenses Income Before Tax $ 53,500 $ 57,400 $ 110,900 $ 58,010 less Garcon Company Partial Balance sheet (Current assets) $ $ 20,000 14,200 Current Assets Cash Accounts Receivables Inventories: Ending Raw material inventory Ending Work in Process Inventory Ending Finished goods Inventory Total Current Assets $ 5,800 $ 26,800 $ 17,300 $ $ 49,900 84,100 Pepper Company Partial Balance sheet (Current assets) $ $ 19,700 23,950 Current Assets Cash Accounts Receivables Inventories: Ending Raw material inventory Ending Work in Process Inventory Ending Finished goods Inventory Total Current Assets $ 9,400 $ 20,600 $ 17,000 $ $ 47,000 90,650 Factory Equiment is a fixed Asset

Prime Cost Garcon Pepper Add Direct Material : Beginning Inventory of Raw Material Raw Material purchased Raw material Available for use Ending Inventory of Raw Material Direct Material used Direct Labor Total Prime Cost Less $ 10,900 $ $ 42,000 $ $ 52,900 $ $ 5,800 $ $ 47,100 $ $ 22,800 $ $ 69,900 $ 11,550 53,500 65,050 9,400 55,650 44,600 100,250 Add Prime Cost = Direct Material Used + Direct Labor Conversion Cost Garcon Pepper $ 22,800 $ 44,600 Direct Labor Factory Overhead: Rental cost on factory Equipment Factory Utilities Factory supplies used Indirect Labor Repair factory equipment Total Factory Overhead Total Conversion Cost $ 33,250 $ $ 14,700 $ $ 12,100 $ $ 2,250 $ $ 6,380 $ $ 68,680 $ $ 91,480 $ 25,000 13,000 5,900 8,800 3,950 56,650 101,250 Add Conversion Cost = Direct Labor + Total Factory Overhead Cost