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 (direct materials) 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 (indirect materials) General and administrative expenses Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses Sales Cash Factory equipment, net Accounts receivable, net Garcon Company $13,000 16,820 16,820 10,600 34,750 21.020 20.620 22,900 7.620 9,150 13,600 28,500 2.200 5.900 44,500 60,800 201,030 33,000 227,500 15,800 Pepper Company $ 16,300 22,500 9, 150 23,500 38,200 13.100 21,400 7.600 15,000 5,800 46.000 8,380 3.000 62,500 47.500 312,510 18,200 145, 825 19,450 Required: 1. Compute the total prime costs for both Garcon Company and Pepper Company 2. Compute the total conversion costs for both Garcon Company and Pepper Company. Complete this question by entering your answers in the tabs below. Required Required Compute the total prime costs for both Garcon Company and Pepper Company Garcon Pepper Company Company Direct materials Raw materials available for use 0 0 Direct materials used 0 0 Total primo costs $ 0 $ 0 Required 1 Required 2 >

Answer 1

1. Computation of the total prime costs for both Garcon Company and Pepper Company
	Garcon Company	Pepper Company
Direct materials
Beginning raw materials inventory	10,600.00	9,150.00
Raw materials purchases	44,500.00	62,500.00
Raw materials available for use	55,100.00	71,650.00
Less: Ending raw materials inventory	(7,600.00)	(7,600.00)
Direct materials used	47,500.00	64,050.00
Direct labor	21,000.00	38,200.00
Total prime costs	68,500.00	102,250.00
2. Computation of the total conversion costs for both Garcon Company and Pepper Company
	Garcon Company	Pepper Company
Direct labor	21,000.00	38,200.00
Factory overhead
Factory utilities	9,150.00	15,000.00
Factory supplies used	13,600.00	5,800.00
Indirect labor	2,200.00	8,380.00
Repairs—Factory equipment	5,900.00	3,000.00
Rental cost on factory equipment	34,750.00	23,500.00
Total factory overhead	65,600.00	55,680.00
Total conversion costs	86,600.00	93,880.00