Question

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

	Garcon Company					Pepper Company
Beginning finished goods inventory		$	14,000			$	19,450
Beginning work in process inventory			16,300				20,100
Beginning raw materials inventory (direct materials)			8,900				9,450
Rental cost on factory equipment			32,750				24,850
Direct labor			24,400				41,000
Ending finished goods inventory			21,050				13,400
Ending work in process inventory			25,000				19,400
Ending raw materials inventory			7,100				8,200
Factory utilities			13,500				16,500
Factory supplies used (indirect materials)			11,500				4,200
General and administrative expenses			31,000				58,500
Indirect labor			1,850				8,620
Repairs—Factory equipment			7,340				1,600
Raw materials purchases			34,500				60,500
Selling expenses			55,200				53,800
Sales			220,530				317,510
Cash			28,000				17,700
Factory equipment, net			272,500				118,825
Accounts receivable, net			16,200				20,950

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, 2019.
2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2019.

Answer 1

1. Complete the table to find the cost of goods manufactured
Description	Garcon Company ($)	Pepper Company ($)
Direct Materials
Beginning raw materials Inventory	8900	9450
Add: Raw Materials Purchase	34500	60500
Raw Materials available for use	43400	69950
Less: Ending raw materials inventory	7100	8200
Direct Materials used	36300	61750
Direct Labor	24400	41000
Factory Overhead
Indirect labor	1850	8620
Repairs - Factory Equipment	7340	1600
Factory supplies used	11500	4200
Factory utilities	13500	16500
Rental Cost on factory equipment	32750	24850
Total factory Overhead	66940	55770
Total manufacturing Costs	127640	158520
Add: beginning Work in process Inventory	16300	20100
Total Cost of work in procress	143940	178620
Less: Ending Work in Process Inventory	25000	19400
Cost of goods manufactured	118940	159220
2. Complete the table to find the cost of goods Sold
Description	Garcon Company ($)	Pepper Company ($)
Beginning Finished Goods inventory	14000	19450
Add: Cost of Goods Manufactured	118940	159220
Cost of Goods Available for sale	132940	178670
Less: Ending Finished goods inventory	21050	13400
Cost of Goods Sold	111890	165270