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 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 General and administrative expenses Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses Sales Cash Factory equipment, bet Accounts receivable, he Garcon Company 13,200 14,900 8,000 33,250 19,800 19,850 25,000 6,300 9,600 13,000 24,500 2,400 6,380 34,500 58,000 238,530 30,000 222,500 13,400 Pepper Company $ 16,450 22,500 10,500 23,050 44,200 15,200 20,800 7,400 17,250 4,100 50,000 8,620 3,850 52,500 52,300 322,510 23,200 124,825 21,700

Answer 1

		DIRECT MATERIALS USED:
			Garcon	Pepper
	A	Beginning Raw materials inventory	$8,000	$10,500
	B	Raw Materials Purchases	$34,500	$52,500
	C=A+B	Total Raw materials available	$42,500	$63,000
	D	Ending Raw Materials Inventory	$6,300	$7,400
	E=C-D	DIRECT MATERIALS USED	$36,200	$55,600
		TOTAL FACTORY OVERHEAD COST:
			Garcon	Pepper
		Rental Cost on Factory Equipment	$33,250	$23,050
		Factory Utilities	$9,600	$17,250
		Factory supplies Used	$13,000	$4,100
		Indirect Labor	$2,400	$8,620
		Repairs-Factory Equipment	$6,380	$3,850
		TOTAL FACTORY OVERHEAD COST	$64,630	$56,870
		COST OF GOODS MANUFACTURED
			Garcon	Pepper
	A	Beginning Work in Process inventory	$14,900	$22,500
	.(1)	Direct Materials Cost incurred	$36,200	$55,600
	.(2)	Direct Labor Cost	$19,800	$44,200
	.(3)	Factory Overhaed Costs	$64,630	$56,870
	B=.(1)+.(2)+.(3)	Manufacturing Cost Incurred	$120,630	$156,670
	C=A+B	Total Work in Process available	$135,530	$179,170
	D	Ending Raw Work in Process Inventory	$25,000	$20,800
	E=C-D	COST OF GOODS MANUFACTURED	$110,530	$158,370
		COST OF GOODS SOLD
			Garcon	Pepper
	A	Beginning Finished Goods inventory	$13,200	$16,450
	B	Cost of Goods Manufactured	$110,530	$158,370
	C=A+B	Total Finished Goods available	$123,730	$174,820
	D	Ending Finished Goods Inventory	$19,850	$15,200
	E=C-D	Cost of goods Sold	$103,880	$159,620
		INCOME STATEMENT
			Garcon	Pepper
		Sales	$238,530	$322,510
		Less:Cost of goods Sold	$103,880	$159,620
		Gross Profit	$134,650	$162,890
		Less:Selling Expense	$58,000	$52,300
		Less:General and Administrative expenses	$24,500	$50,000
		Net Income	$52,150	$60,590
		INVENTORIES
			Garcon	Pepper
		Ending Raw Materials Inventory	$6,300	$7,400
		Ending Raw Work in Process Inventory	$25,000	$20,800
		Ending Finished Goods Inventory	$19,850	$15,200
		Total Ending Inventory	$51,150	$43,400
		CURRENT ASSET SECTION OF BALANCE SHEET
			Garcon	Pepper
		Cash	$30,000	$23,200
		Accounts Receivable	$13,400	$21,700
		Inventory	$51,150	$43,400
		Total Current Assets	$94,550	$88,300