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 $ 14,600 17, 100 8, 200 34,000 24, 200 20,900 22,900 6,600 13,050 12,700 34,000 1,600 5,900 39,500 58,000 222,030 24,000 277,500 13,200 Pepper Company $ 16,150 21,000 9,600 22,000 39,800 15,900 19,000 7,800 14,750 4,600 54,000 8,380 1,800 64,000 57,100 325,010 19,200 160,825 23,200

I need help calculating the "less; cost of goods sold".

I cannot figure it out, thanks in advance.

Answer 1

Answer

• Requirements asked

Garcon Company			Pepper Company
Sales	$                222,030.00		Sales	$                325,010.00
Less: Cost of Goods Sold	$                120,450.00		Less: Cost of Goods Sold	$                159,380.00
Gross Profits	$                101,580.00		Gross Profits	$                165,630.00
Operating Expenses:			Operating Expenses:
Selling	$                   58,000.00		Selling	$                   57,100.00
General & admin	$                   34,000.00		General & admin	$                   54,000.00
Income (Loss) before tax	$                     9,580.00		Income (Loss) before tax	$                   54,530.00

• Workings

	Garcon Company	Pepper Company
Direct materials:
Beginning raw materials inventory	$             8,200.00	$             9,600.00
Raw materials purchases	$           39,500.00	$           64,000.00
Raw materials available for use	$           47,700.00	$           73,600.00
Less: Ending raw materials inventory	$             6,600.00	$             7,800.00
Direct materials used	$           41,100.00	$           65,800.00
Direct labor	$           24,200.00	$           39,800.00
Factory overhead:
Factory utilities	$           13,050.00	$           14,750.00
Factory supplies used	$           12,700.00	$             4,600.00
Rental cost on factory equipment	$           34,000.00	$           22,000.00
Indirect labor	$             1,600.00	$             8,380.00
Repairs—Factory equipment	$             5,900.00	$             1,800.00
Total factory overhead	$           67,250.00	$           51,530.00
Total manufacturing costs	$        132,550.00	$        157,130.00
Add: Beginning work in process inventory	$           17,100.00	$           21,000.00
Total cost of work in process	$        149,650.00	$        178,130.00
Less: Ending work in process inventory	$           22,900.00	$           19,000.00
Cost of goods manufactured	$        126,750.00	$        159,130.00

	Garcon Company	Pepper Company
Cost of goods manufactured	$        126,750.00	$        159,130.00
Add: Beginning finished goods inventory	$           14,600.00	$           16,150.00
Cost of Goods available for Sale	$        141,350.00	$        175,280.00
Less: Ending finished goods inventory	$           20,900.00	$           15,900.00
Cost of Goods Sold	$        120,450.00	$        159,380.00