Question

Required information Use the following information for the Exercises below. 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 Direet labor Ending finished goods inventory Ending work in proces 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 $ 12,900 15,400 7,200 33.000 24.800 20,300 25,600 7,500 9.450 11.500 22.500 1,800 6,980 34.000 57,200 237.030 28.000 272,500 13,200 Pepper Company $ 19,150 22.500 10.550 22.750 41,400 16,100 17 800 7,600 12,750 5,000 56,500 9.640 3,000 61,000 51,400 300.010 17.700 133.825 23,950 Exercise 1-8 Cost of goods manufactured and cost of goods sold computation LO P1, P2 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, 2017 2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2017

Answer 1

Ques 1
	Garcon Company	Pepper Company
Direct materials
Beginning raw materials inventory	$                 7,200	$               10,650
Add: Raw materials purchases	$              34,000	$               61,000
Raw materials available for use	$              41,200	$               71,650
Less: Ending raw materials inventory	$                 7,500	$                 7,600
Direct materials used	$              33,700	$               64,050
Direct labor	$              24,800	$               41,400
Factory overhead
Rental cost on factory equipment	$              33,000	$               22,750
Factory utilities	$                 9,450	$               12,750
Factory supplies used	$              11,500	$                 5,000
Indirect labor	$                 1,800	$                 9,640
Repairs—Factory equipment	$                 6,980	$                 3,000
Total factory overhead	$              62,730	$               53,140
Total manufacturing costs	$            121,230	$             158,590
Add: Beginning work in process inventory	$              15,400	$               22,500
Total cost of work in process	$            136,630	$             181,090
Less: Ending work in process inventory	$              25,600	$               17,800
Cost of goods manufactured	$            111,030	$             163,290
Ques 1
	Garcon Company	Pepper Company
Beginning finished goods inventory	$              12,900	$               19,150
Add: Cost of goods manufactured	$            111,030	$             163,290
Cost of goods available for sale	$            123,930	$             182,440
Less: Ending finished goods inventory	$              20,300	$               16,100
Cost of goods sold	$            103,630	$             166,340

GARCON COMPANY
Income Statement
For Year Ended December 31, 2015
Sales	$ 237,030
Less: Cost of goods sold	$ 103,630
Gross profit	$ 133,400
Operating expenses
Selling expenses	$   57,200
General and administrative expenses	$   22,500
Income (loss) before tax	$   53,700
PEPPER COMPANY
Income Statement
For Year Ended December 31, 2015
Sales	$ 300,010
Less: Cost of goods sold	$ 166,340
Gross profit	$ 133,670
Operating expenses
Selling expenses	$   51,400
General and administrative expenses	$   56,500
Income (loss) before tax	$   25,770

GARCON COMPANY
Partial Balance Sheet
As of December 31, 2015
Cash		$ 28,000
Accounts receivable, net		$ 13,200
Inventories
Raw materials inventory	$   7,500
Work in process inventory	$ 25,600
Finished goods inventory	$ 20,300
		$ 53,400
Total current assets		$ 94,600
PEPPER COMPANY
Partial Balance Sheet
As of December 31, 2015
Cash		$ 17,700
Accounts receivable, net		$ 23,950
Inventories
Raw materials inventory	$   7,600
Work in process inventory	$ 17,800
Finished goods inventory	$ 16,100
		$ 41,500
Total current assets		$ 83,150