Please answer 1A and 1B if possible, it would be appreciated Required informatio

Question

Please answer 1A and 1B if possible, it would be appreciated

Required information [The following information applies to the questions displayed below] The following data is provided for Garcon Company and Pepper Company. Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory 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 General and administrative expenses Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses Sales Cash Factory equipment, net Accounts receivable, net Garcorn Company $ 13,500 18,100 11,500 32,000 22,600 21,650 22,600 7,500 11,550 9,100 27,500 1,550 6,860 46,000 60,800 234,030 34,000 262,500 16,400 Pepper Company $ 16,600 23,850 11,250 26,650 38,600 16,800 16,800 9,400 13,250 5,400 54,500 8,320 3,850 57,000 57,400 317,510 17,700 151,825 19,700 Required: 1-a. Prepare income statements for both Garcon Company and Pepper Company 1-b. Prepare the current assets section of the balance sheet for each company.

Explanation / Answer

Computation of Cost of goods sold of Both the companies: GARCON PEPPER Raw material consumed: Beginning inventory of RM 11500 11250 Add: Purchases 46000 57000 57500 68250 Less: Ending Raw material Inv. 7500 50000 9400 58850 Direct labor 22600 38600 Manufacturing overheads Rental cost of factory equip. 32000 26650 Factory utilities 11550 13250 Factory supplies 9100 5400 Indirect Labor 1550 8320 Repairs-Factory equipment 6860 61060 3850 57470 Total Manufacturing cost incurred 133660 154920 Add: Beginning Work in process inv. 18100 23850 Less: Ending Work in process inv. 22600 16800 Cost of Goods manufactured 129160 161970 Add: Beginning FG inv. 13500 16600 Cost of Goods available for sale 142660 178570 Less: Ending Finished Goods inventory 21650 16800 Cost of Goods sold 121010 161770 Garcon Company Income Statement Sales revenue 234030 Less: Cost of goods sold 121010 Gross Margin 113020 Operating expense General admin expense 27500 Selling expense 60800 Net Operating income 24720 Pepper Company Income Statement Sales revenue 317510 Less: Cost of goods sold 161770 Gross Margin 155740 Operating expense General admin expense 54500 Selling expense 57400 Net Operating income 43840 GARCON Company: Partial Balance Sheet Current Assets: Cash 34000 Accounts receivable 16400 Inventories Raw material inventory 7500 Work in process inventory 22600 Finished Goods inventory 21650 51750 Total Current Assets 102150 PEPPER company: Partial Balance Sheet Current Assets: Cash 17700 Accounts receivable 19700 Inventories Raw material inventory 9400 Work in process inventory 16800 Finished Goods inventory 16800 43000 Total Current Assets 80400

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