Required information Use the following information for the Exercises below. [The

Question

Required information

Use the following information for the Exercises below.

[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 $ 14,800 $ 17,650 Beginning work in process inventory 15,800 23,850 Beginning raw materials inventory 8,300 14,850 Rental cost on factory equipment 29,000 26,200 Direct labor 24,400 43,400 Ending finished goods inventory 20,900 16,700 Ending work in process inventory 24,700 17,400 Ending raw materials inventory 6,200 9,000 Factory utilities 14,250 15,500 Factory supplies used 10,300 5,800 General and administrative expenses 32,000 55,000 Indirect labor 1,800 7,780 Repairs—Factory equipment 7,580 3,250 Raw materials purchases 39,000 62,500 Selling expenses 52,000 51,400 Sales 241,530 327,510 Cash 35,000 16,200 Factory equipment, net 272,500 121,825 Accounts receivable, net 16,800 20,450

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

Explanation / Answer

Solution:

Part 1 ---

Schedule of Cost of Goods Manufactured

Garcon Company

Pepper Company

Direct materials:

Beginning raw materials inventory

$8,300

$14,850

Plus: Raw materials purchases

$39,000

$62,500

Raw materials available for use

$47,300

$77,350

Less: Ending raw materials inventory

$6,200

$9,000

A

Direct materials used

$41,100

$68,350

B

Direct Labor Costs

$24,400

$43,400

Factory Overhead:

Factory Utilities

$14,250

$15,500

Factory supplies used

$10,300

$5,800

Indirect labor

$1,800

$7,780

Repairs - factory equipment

$7,580

$3,250

Rental cost on factory equipment

$29,000

$26,200

C

Total Factory Overhead

$62,930

$58,530

(A+B+C)

Total Manufacturing costs

$128,430

$170,280

Plus: Beginning work in process inventory

$15,800

$23,850

Total cost of work in process

$144,230

$194,130

Less: Ending work in process inventory

$24,700

$17,400

Cost of Goods Manufactured

$119,530

$176,730

Part 2 – Cost of Goods Sold

Schedule of Cost of Goods Sold

Garcon Company

Pepper Company

Cost of Goods Manufactured

$119,530

$176,730

Plus: Beginning finished goods inventory

$14,800

$17,650

Cost of goods available for sale

$134,330

$194,380

Less: Ending finished goods inventory

$20,900

$16,700

Cost of goods sold

$113,430

$177,680

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Schedule of Cost of Goods Manufactured

Garcon Company

Pepper Company

Direct materials:

Beginning raw materials inventory

$8,300

$14,850

Plus: Raw materials purchases

$39,000

$62,500

Raw materials available for use

$47,300

$77,350

Less: Ending raw materials inventory

$6,200

$9,000

A

Direct materials used

$41,100

$68,350

B

Direct Labor Costs

$24,400

$43,400

Factory Overhead:

Factory Utilities

$14,250

$15,500

Factory supplies used

$10,300

$5,800

Indirect labor

$1,800

$7,780

Repairs - factory equipment

$7,580

$3,250

Rental cost on factory equipment

$29,000

$26,200

C

Total Factory Overhead

$62,930

$58,530

(A+B+C)

Total Manufacturing costs

$128,430

$170,280

Plus: Beginning work in process inventory

$15,800

$23,850

Total cost of work in process

$144,230

$194,130

Less: Ending work in process inventory

$24,700

$17,400

Cost of Goods Manufactured

$119,530

$176,730

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