Question

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

	Garcon Company					Pepper Company
Beginning finished goods inventory		$	14,200			$	17,350
Beginning work in process inventory			15,600				23,400
Beginning raw materials inventory			7,300				11,550
Rental cost on factory equipment			29,750				24,400
Direct labor			24,800				41,400
Ending finished goods inventory			20,900				16,200
Ending work in process inventory			22,300				16,600
Ending raw materials inventory			6,400				7,400
Factory utilities			14,250				14,750
Factory supplies used			8,500				5,200
General and administrative expenses			22,500				55,000
Indirect labor			1,450				9,340
Repairs—Factory equipment			5,780				1,800
Raw materials purchases			41,000				54,500
Selling expenses			58,000				47,500
Sales			202,530				305,010
Cash			34,000				24,200
Factory equipment, net			222,500				157,825
Accounts receivable, net			16,600				19,700

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, 2017.
2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2017.

Complete this question by entering your answers in the tabs below.

Required 1

Required 2

Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year ended December 31, 2017.

	Garcon Company Pepper Company Direct materials Raw materials available for use 0 0 Direct materials used 0 0 Factory overhead Total factory overhead 0 0 Total manufacturing costs Total cost of work in process 0 0 Cost of goods manufactured $0 $0

Answer 1

• All working forms part of the answer
• Requirement 1

	Garcon Company	Pepper Company
Direct materials:
Beginning raw materials inventory	$           7,300.00	$          11,550.00
Raw materials purchases	$        41,000.00	$          54,500.00
Raw materials available for use	$        48,300.00	$          66,050.00
Less: Ending raw materials inventory	$           6,400.00	$             7,400.00
Direct materials used	$        41,900.00	$          58,650.00
Direct labor	$        24,800.00	$          41,400.00
Factory overhead:
Factory utilities	$        14,250.00	$          14,750.00
Factory supplies used	$           8,500.00	$             5,200.00
Rental cost on factory equipment	$        29,750.00	$          24,400.00
Indirect labor	$           1,450.00	$             9,340.00
Repairs—Factory equipment	$           5,780.00	$             1,800.00
Total factory overhead	$        59,730.00	$          55,490.00
Total manufacturing costs	$      126,430.00	$        155,540.00
Add: Beginning work in process inventory	$        15,600.00	$          23,400.00
Total cost of work in process	$      142,030.00	$        178,940.00
Less: Ending work in process inventory	$        22,300.00	$          16,600.00
Cost of goods manufactured	$      119,730.00	$        162,340.00

• Requirement 2

	Garcon Company	Pepper Company
Cost of goods manufactured	$      119,730.00	$        162,340.00
Add: Beginning finished goods inventory	$        14,200.00	$          17,350.00
Cost of Goods available for Sale	$      133,930.00	$        179,690.00
Less: Ending finished goods inventory	$        20,900.00	$          16,200.00
Cost of Goods Sold	$      113,030.00	$        163,490.00