In: Accounting
[The following information applies to the questions
displayed below.]
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. Prepare income statements for both Garcon
Company and Pepper Company.
2. Prepare the current assets section of the
balance sheet for each company.