Question

Required information [The following information applies to the questions displayed below.] The following data is provided for Garcon Company and Pepper Company. Garcon Pepper Company Company $ 13,800 15,700 16,000 21,900 Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory (direct materials) Rental cost on factory equipment 11,250 11,100 32,750 19,200 17,300 24,400 500,ר 14,850 24,100 43,000 13,900 20,200 8,600 15,000 4,200 53,000 9,280 2,050 68,500 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 12,100 28,500 2,100 5,060 39,500 54,800 Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses 52,600 Sales 340,010 208,530 28,000 237,500 13,400 Cash 24,200 160,825 20,950 Factory equipment, net Accounts receivable, net Required: 1. Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year ended December 31, 2019. 2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2019.

Answer 1

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Answer 1
Cost of goods manufactured	Garcon	Pepper
Beginning Raw material inventory	11,100.00	11,250.00
Raw material Purchases	39,500.00	68,500.00
Total Raw material available for use	50,600.00	79,750.00
Less: Ending Raw material inventory	7,500.00	8,600.00
Direct materials used	43,100.00	71,150.00
Direct Labor	19,200.00	43,000.00
Manufacturing Overhead
Rental cost on factory equipment	32,750.00	24,100.00
Factory utilities	14,850.00	15,000.00
Factory supplies	12,100.00	4,200.00
Indirect Labor	2,100.00	9,280.00
Repairs- Factory equipment	5,060.00	2,050.00
Total Manufacturing Overhead	66,860.00	54,630.00
Total Manufacturing costs	129,160.00	168,780.00
Beginning Work in process inventory	15,700.00	21,900.00
Total cost of work in process	144,860.00	190,680.00
Less: Ending Work in process inventory	24,400.00	20,200.00
Cost of goods manufactured	120,460.00	170,480.00
Answer 2
Cost of goods sold	Garcon	Pepper
Beginning Finished goods inventory	13,800.00	16,000.00
Cost of goods manufactured	120,460.00	170,480.00
Cost of goods available for sale	134,260.00	186,480.00
Less: Finished goods inventory, ending	17,300.00	13,900.00
Cost of goods sold	116,960.00	172,580.00
Answer 1
Income Statement	Garcon	Pepper
Sales Revenues
Sales Revenues	208,530.00	340,010.00
Net Sales	208,530.00	340,010.00
Less: Cost of goods sold	116,960.00	172,580.00
Gross Profit	91,570.00	167,430.00
Less: Operating Expenses
General and administrative	28,500.00	53,000.00
Selling expense	54,800.00	52,600.00
Total Operating Expenses	83,300.00	105,600.00
Net Income	8,270.00	61,830.00
Answer 2
Current Assets	Garcon	Pepper
Cash	28,000.00	24,200.00
Accounts Receivable	13,400.00	20,950.00
Inventories
Finished goods	17,300.00	13,900.00
Work in process	24,400.00	20,200.00
Raw materials	7,500.00	8,600.00
Total Current Assets	90,600.00	87,850.00
Answer 1
Prime costs	Garcon	Pepper
Beginning Raw material inventory	11,100.00	11,250.00
Raw material Purchases	39,500.00	68,500.00
Total Raw material available for use	50,600.00	79,750.00
Less: Ending Raw material inventory	7,500.00	8,600.00
Direct materials used	43,100.00	71,150.00
Direct Labor	19,200.00	43,000.00
Prime costs	62,300.00	114,150.00
Answer 2
Conversion costs	Garcon	Pepper
Direct Labor	19,200.00	43,000.00
Manufacturing Overhead
Rental cost on factory equipment	32,750.00	24,100.00
Factory utilities	14,850.00	15,000.00
Factory supplies	12,100.00	4,200.00
Indirect Labor	2,100.00	9,280.00
Repairs- Factory equipment	5,060.00	2,050.00
Total Manufacturing Overhead	66,860.00	54,630.00
Conversion costs	86,060.00	97,630.00