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, net Accounts receivable, net Garcon Company $ 14,500 15,900 8,600 31,000 22,400 20,750 25,300 5,500 13,650 10,900 32,500 1,800 6,620 36,000 55,600 205,530 29,000 217,500 14,200 Pepper Company $ 16,150 22,650 9,450 25,150 39,400 14,800 20,600 7,400 15,750 5,700 44,000 9,760 1,800 65,500 58,900 332,510 18,700 148,825 21,950 Required: 1-a. Prepare income statements for both Garcon Company and Pepper Company. 1-b. Prepare the current assets section of the balance sheet for each company. Complete this question by entering your answers in the tabs below. Req 1A Garcon Req 1A Pepper Req 1B Garcon Req 1B Pepper Prepare the income statement for Garcon Company. GARCON COMPANY Income Statement For Year Ended December 31, 2017 Operating expenses Income (loss) before tax $ 0 < Req 1A Garcon Req 1A Pepper >

Answer 1

		Garcon company
		Income Statement
Sales				205,530
less:Cost of goods sold				109,820
Gross Profit				95,710
Operating expense
General & administrative expense				32,500
Selling expense				55,600
Income (loss)before tax				7,610
Pepper company
Income Statement
Sales				332,510
less:Cost of goods sold				168,510
Gross Profit				164,000
Operating expense
General & administrative expense				44,000
Selling expense				58,900
Income (loss)before tax				61,100
Garcon company
Partial Balance Sheet
Cash				29,000
Accounts receivable,net				14,200
Invetories
Raw Materials inventory			5,500
Work in process inventory			25,300
Finished goods inventory			20,750
				51,550
Total current assets				94,750
Pepper company
Income statement
Cash				18,700
Accounts receivable,net				21,950
Invetories
Raw Materials inventory			7,400
Work in process inventory			20,600
Finished goods inventory			14,800
				42,800
Total current assets				83,450
note cost of goods sold= opening inventories+ all production costs-
closing inventories

working notes

Required 1
				Garcon	Pepper
				company	Company
Direct Materials
Beginning raw materials inventory				8,600	9,450
Raw materials purchases				36,000	65,500
Raw materials available for use				44,600	74,950
Ending raw materials inventory				5,500	7,400
Direct materials used				39,100	67,550
Direct labor				22,400	39,400
Factory overhead
Rental cost on factory equipment				31,000	25,150
Factory utilities				13,650	15,750
Factory supplies used				10,900	5,700
Indirect labor				1,800	9,760
Repairs- factory equipment				6,620	1,800
Total factory overhead				63,970	58,160
total manufacturing costs				125,470	165,110
Add:Beginning work in process				15,900	22,650
total cost of WIP				141,370	187,760
less:Ending work in process inventory				25,300	20600
Cost of goods manufactured				116,070	167,160

				Garcon	Pepper
				Company	Company
Beginning finished goods inventory				14,500	16,150
Add:Cost of goods manufactured				116,070	167,160
Cost of goods available for sale				130,570	183,310
less:Ending finished goods inventory				20,750	14,800
Cost of goods sold				109,820	168,510