Question

The following data is provided for Garcon Company and Pepper Company. Garcon Company Pepper Company Beginning finished goods inventory $ 12,800 $ 16,900 Beginning work in process inventory 18,600 20,700 Beginning raw materials inventory 9,500 10,650 Rental cost on factory equipment 29,000 24,550 Direct labor 20,000 35,800 Ending finished goods inventory 20,600 16,800 Ending work in process inventory 22,300 21,000 Ending raw materials inventory 7,000 9,600 Factory utilities 11,700 14,750 Factory supplies used 10,300 5,500 General and administrative expenses 24,000 56,000 Indirect labor 2,350 9,400 Repairs—Factory equipment 7,220 2,000 Raw materials purchases 37,500 65,000 Selling expenses 51,200 47,200 Sales 247,530 342,510 Cash 24,000 17,700 Factory equipment, net 242,500 136,825 Accounts receivable, net 16,600 21,450

1. Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year ended December 31, 2017.

2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2017.

3. Prepare income statements for both Garcon Company and Pepper Company.

4. Prepare the current assets section of the balance sheet for each company.

5. Compute the total prime costs for both Garcon Company and Pepper Company.

6. Compute the total conversion costs for both Garcon Company and Pepper Company.

Answer 1