Question

The following data is provided for Garcon Company and Pepper Company.

	Garcon Company					Pepper Company
Beginning finished goods inventory		$	13,500			$	19,300
Beginning work in process inventory			15,300				23,550
Beginning raw materials inventory (direct materials)			9,200				12,600
Rental cost on factory equipment			27,250				23,950
Direct labor			19,200				41,000
Ending finished goods inventory			20,750				15,700
Ending work in process inventory			22,900				21,200
Ending raw materials inventory			6,100				9,800
Factory utilities			13,200				16,000
Factory supplies used (indirect materials)			13,900				4,500
General and administrative expenses			22,000				48,500
Indirect labor			1,350				8,260
Repairs—Factory equipment			7,820				2,500
Raw materials purchases			46,000				61,000
Selling expenses			63,200				48,100
Sales			207,030				340,010
Cash			22,000				21,700
Factory equipment, net			242,500				160,825
Accounts receivable, net			15,000				23,700

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.

Answer 1