Question

Saved The following data is provided for Garcon Company and Pepper Company Garcon Company $ 15,000 Pepper Company 19,900 $ 15,200 23,400 7,200 11, 100 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 35,000 22,000 17,300 "22,300 8,000 9,900 12,700 23,500 1,800 6,140 46,500 63,600 : 219,030 33,000 217,500 16,800 24,700 41,800 16,700 18,800 10,000 13,500 5,100 49,500 9,940 3,900 64,500 56,200 317,510 22,200 136,825 22,450 < Prev 12 13 of 16 Ne search O e Ô Bi w

Answer 1

Answer with working note is given below

Pepper Company $11,100 $64,500 $75,600 $10,000 $65,600 $41,800 $107,400 Schedule of Cost of Goods Manufactured Garcon Company Direct Material Beginning Raw material inventory $7,200 Add: Raw material purchase $46,500 Raw material available for use $53,700 Less: Closing inventory of Raw Material $8,000 Direct material used $45,700 Direct Labor $22,000 Prime Cost $67,700 Factory overhead Rental cost on factory equipment $35,000 Factory utilities $9,900 Factory supplies $12,700 Indirect labor $1,800 Repairs factory equipment $6,140 Total factory overhead $65,540 Total manufacturing cost $133,240 Add: Opening work in process inventory $15,200 Total cost of work in process $148,440 Less: Closing work in process inventory $22,300 Cost of Goods Manufactured $126,140 $24,700 $13,500 $5,100 $9,940 $3,900 $57,140 $164,540 $23,400 $187,940 $18,800 $169,140 Schedule of Cost of Goods Sold Opening Finished Goods inventory Add: Cost of Goods manufactured Cost of Goods available for sale Less: Closing Finished Goods inventory Cost of Goods sold Garcon Company $15,000 $126,140 $141,140 $17,300 $123,840 Pepper Company $19,900 $169,140 $189,040 $16,700 $172,340 Garcon Company Income Statement For the year ended December 31, 2017 Amount $219,030 $123,840 As per working note above $95,190 Sales Less: Cost of Goods Sold Gross profit Less: Operating expenses General and Administrative expenses Selling expenses Income (loss) before tax $23,500 $63,600 $87,100 $8,090 Pepper Company Income Statement For the year ended December 31, 2017 Amount $317,510 $172,340 As per working note above $145,170 Sales Less: Cost of Goods Sold Gross profit Less: Operating expenses General and Administrative expenses Selling expenses Income (loss) before tax $49,500 $56,200 $105,700 $39,470 1b Current Assets section of Balance Sheet Garcon Company Partial Balance Sheet As of December 31, 2017 Cash Accounts Receivable Inventories: Raw Materials Work in process Finished Goods Total Current Assets $33,000 $16,800 $8,000 $22,300 $17,300 $47,600 $97,400 Current Assets section of Balance Sheet Pepper Company Partial Balance Sheet As of December 31, 2017 Cash Accounts Receivable Inventories: Raw Materials Work in process Finished Goods Total Current Assets $22,200 $22,450 $10,000 $18,800 $16,700 $45,500 $90,150