Question

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 $ 13,400 16,000 7,700 32,250 23,600 20,900 26, 200 5,500 10,500 9,700 28,500 2,100 4,700 38,500 50,400 222,030 24,000 267,500 15,400 Pepper Company $ 19,900 22,200 11,850 | 23,800 37,800 16,400 21,200 | 8,000 17,250 | 3,500 46,000 8,800 3,300 | 59,000 56,800 300,010 19,200 | 169,825 21,950

Answer 1

Solution:

below is the statement of cost of goods manufactured:

Garcon Co. ($) Pepper Co. ($) 7,700 38,500 46,200 5,500 40,700 23,600 11,850 59,000 70,850 8,000 62,850 37,800 Particulars Direct materials Beginning raw materials inventory Add: Raw materials Purchased Raw materials available for use Less: Ending raw materials inventory Direct materials used(a) Direct labor(b) Factory overhead Rental cost on factory equipment Factory utilities Factory supplies used Indirect labor Repairs factory equipment Total factory overhead(c) Total Manufacturing cost(a+b+c=d) Add: Beginning work in progress inventory(e) Total cost of work in process(d+e=f) Less: Ending work in progress inventory (8) Cost of goods manufactured (f-g) 32,250 10,500 9,700 2,100 4,700 59,250 123,550 16,000 139,550 26,200 113,350 23,800 17,250 3,500 8,800 3,300 56,650 157,300 22,200 179,500 21,200 158,300

Solution:(2). Calculation of cost of goods sold: Particulars Beginning finished goods Inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods Inventory Cost of goods sold Garcon Co. ($) Pepper Co. ($) 13,400 19,900 113,350 158,300 126,750 178,200 20,900 16,400 105,850 161,800