Question

Using the following data, 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 Garcon Company $ 13,300 14,600 11,800 29,750 20,600 19,400 25,600 5,700 14,400 11,800 27,000 1,750 6,740 38,500 55,200 202,530 32,000 222,500 14,200 Pepper Company $ 19,450 20,850 12,900 25,000 41,400 14,100 19,400 9,400 16,500 5,800 51,000 7,960 2,800 58,000 57,400 320,010 20,700 130,825 20,950 Sales Cash Factory equipment, net Accounts receivable, net

Please organize the chart as seen and explain all calculations, other wise I will mark as incorrect. Thank You!

Answer 1

Answer-   GARCON COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31,2015

Sales	$202,530
Cost of Goods Sold	$112,540
Gross Profit	$89,990
Operating Expenses:-
General and Administrative Expenses	$27,000
Selling Expenses	$55,200
Total Operating Expenses	$82,200
Income Before Tax ($89,990-$82,200)	$7,790

  GARCON COMPANY

PARTIAL BALANCE SHEET

AS ON DECEMBER 31,2015

Cash		$32,000
Accounts Receivable, net		$14,200
Inventories
Ending Raw Materials Inventory	$5,700
Ending Work in process Inventory	$25,600
Ending Finished Goods Inventory	$19,400
		$50,700
Total Current Assets		$96,900

Working Note:-

  GARCON COMPANY

STATEMENT OF COST OF GOODS SOLD

FOR THE YEAR ENDED DECEMBER 31,2015

Raw Materials:-
Beginning raw material inventory	$11,800
Raw Material purchases	$38,500
Cost of materials available for use	$50,300
Less: Ending raw materials inventory	$5,700
Cost of raw materials used in production		$44,600
Direct Labor		$20,600
Factory Overhead:-
Rental cost of factory equipment	$29,750
Factory utilities	$14,400
Factory supplies used	$11,800
Indirect Labor	$1,750
Repairs-Factory equipment	$6,740
Total Factory Overhead		$64,440
Total Manufacturing costs incurred during the year		$129,640
Add: Beginning Work in Process Inventory		$14,600
Total manufacturing costs in work in process inventory		$144,240
Less: Ending work in process inventory		$25,600
Cost of Goods Manufactured		$118,640
Add: Beginning Finished Goods Inventory		$13,300
Cost of Goods available for sale		$131,940
Less: Ending Finished Goods Inventory		$19,400
Cost of Goods Sold		$112,540

  PEPPER COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31,2015

Sales	$320,010
Cost of Goods Sold	$167,760
Gross Profit	$152,250
Operating Expenses:-
General and Administrative Expenses	$51,000
Selling Expenses	$57,400
Total Operating Expenses	$108,400
Income Before Tax ($152,250-$108,400)	$43,850

  PEPPER COMPANY

PARTIAL BALANCE SHEET

AS ON DECEMBER 31,2015

Cash		$20,700
Accounts Receivable, net		$20,950
Inventories
Ending Raw Materials Inventory	$9,400
Ending Work in process Inventory	$19,400
Ending Finished Goods Inventory	$14,100
		$42,900
Total Current Assets		$84,550

Working Note:-

PEPPER COMPANY

STATEMENT OF COST OF GOODS SOLD

FOR THE YEAR ENDED DECEMBER 31,2015

Raw Materials:-
Beginning raw material inventory	$12,900
Raw Material purchases	$58,000
Cost of materials available for use	$70,900
Less: Ending raw materials inventory	$9,400
Cost of raw materials used in production		$61,500
Direct Labor		$41,400
Factory Overhead:-
Rental cost of factory equipment	$25,000
Factory utilities	$16,500
Factory supplies used	$5,800
Indirect Labor	$7,960
Repairs-Factory equipment	$2,800
Total Factory Overhead		$58,060
Total Manufacturing costs incurred during the year		$160,960
Add: Beginning Work in Process Inventory		$20,850
Total manufacturing costs in work in process inventory		$181,810
Less: Ending work in process inventory		$19,400
Cost of Goods Manufactured		$162,410
Add: Beginning Finished Goods Inventory		$19,450
Cost of Goods available for sale		$181,860
Less: Ending Finished Goods Inventory		$14,100
Cost of Goods Sold		$167,760

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