Required informationn The following information applies to the questions display
ID: 2333810 • Letter: R
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Required informationn The following information applies to the questions displayed below The following data is provided for Garcon Company and Pepper Company 20 points Garcon Company Pepper Company eBook 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 proces:s 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 $12,500 19,450 20,850 9,450 25,150 15,800 9,800 27,750 Hint Print 21,200 50 40,600 15,200 References 19,5 25,600 19,600 7,900 11,100 9,100 9, 200 14,750 5,500 32,500 55,500 1,850 7,700 36,000 63,680 238, 530 28,88e 282, 500 17,000 9,640 2,450 52, 500 49,60e 337,510 24, 700 142,825 20, 200 Required 1. Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year endedExplanation / Answer
Part 1
Cost of Goods Manufactured
Garcon Company
Pepper Company
Direct Material
Beginning raw material Inventory
$ 9,800.00
$ 9,450.00
Add: Raw material Purchases
$ 36,000.00
$ 52,500.00
Raw material Available for use
$ 45,800.00
$ 61,950.00
Less: Ending Raw material Inventory
$ 7,900.00
$ 9,200.00
Material Used in Production
$ 37,900.00
$ 52,750.00
Direct labor
$ 21,200.00
$ 40,600.00
Manufacturing Overheads
Rental cost of Factory Equipment
$ 27,750.00
$ 25,150.00
Factory Utilities
$ 11,100.00
$ 14,750.00
Factory Supplies Used
$ 9,100.00
$ 5,500.00
Indirect Labor
$ 1,850.00
$ 9,640.00
Repairs-Factory Equipments
$ 7,700.00
$ 2,450.00
Total Factory Overheads
$ 57,500.00
$ 57,490.00
Total manufacturing Cost
$ 116,600.00
$ 150,840.00
Add: Beginning Work in Progress
$ 15,800.00
$ 20,850.00
Total Cost of Work in Progress
$ 132,400.00
$ 171,690.00
Less: Ending Work in progress
$ 25,600.00
$ 19,600.00
Cost of Goods Manufactured
$ 106,800.00
$ 152,090.00
Part 2
DELREY MFG.
Income Statement
For the year ended December 31 2017
Sales
$ 1,132,000.00
Cost Of goods sold
Finished goods Inventory, December 31 2016
$ 64,600.00
Cost of Goods manufactured
$ 695,000.00
Cost of Goods Available for sale
$ 759,600.00
Less: Finished goods Inventory, December 31 2017
$ 73,600.00
Cost of Goods sold
$ 686,000.00
Gross Profit
$ 446,000.00
Operating Expenses
Advertising Expense
$ 84,000.00
General and Administrative expense
$ 139,000.00
Total Operating expense
$ 223,000.00
Operating Income
$ 223,000.00
Since operating income is $ 223000 after all expenses. Only missing amount is for cost of goods manufactured which is the balancing figure to make Operating income equal to $ 223,000.
Cost of Goods Manufactured
Garcon Company
Pepper Company
Direct Material
Beginning raw material Inventory
$ 9,800.00
$ 9,450.00
Add: Raw material Purchases
$ 36,000.00
$ 52,500.00
Raw material Available for use
$ 45,800.00
$ 61,950.00
Less: Ending Raw material Inventory
$ 7,900.00
$ 9,200.00
Material Used in Production
$ 37,900.00
$ 52,750.00
Direct labor
$ 21,200.00
$ 40,600.00
Manufacturing Overheads
Rental cost of Factory Equipment
$ 27,750.00
$ 25,150.00
Factory Utilities
$ 11,100.00
$ 14,750.00
Factory Supplies Used
$ 9,100.00
$ 5,500.00
Indirect Labor
$ 1,850.00
$ 9,640.00
Repairs-Factory Equipments
$ 7,700.00
$ 2,450.00
Total Factory Overheads
$ 57,500.00
$ 57,490.00
Total manufacturing Cost
$ 116,600.00
$ 150,840.00
Add: Beginning Work in Progress
$ 15,800.00
$ 20,850.00
Total Cost of Work in Progress
$ 132,400.00
$ 171,690.00
Less: Ending Work in progress
$ 25,600.00
$ 19,600.00
Cost of Goods Manufactured
$ 106,800.00
$ 152,090.00
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