Required information [The following information applies to the questions display

Question

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 Garcon Company $ 13,400 18,800 7,400 34,750 24,000 17,450 25,600 5,500 13,800 9,100 22,500 2,000 6,980 46,500 54,400 214,530 21,000 277,500 15,200 Pepper Company $19,450 23,400 10,650 23,200 43,800 16,000 20,600 9,200 14,000 4,800 48,000 8,800 2,850 56,000 49,900 320,010 16,700 118,825 24,450

Explanation / Answer

Requirement 1 Garcon company Pepper company Direct materials Beginning raw materials inventory $       7,400 $       10,650 Add: Raw Material purchased $     46,500 $       56,000 Raw Material available to use $     53,900 $       66,650 Deduct: Ending Raw Material Inventory $       5,500 $         9,200 Direct material used $     48,400 $       57,450 Direct Labour $     24,000 $       43,800 Factory overhead Rental cost on factory equipment $     34,750 $       23,200 Factory utilities $     13,800 $       14,000 Factory Supplies used $       9,100 $         4,800 Indirect labour $       2,000 $         8,800 Repairs-Factory equipment $       6,980 $         2,850 Total factory overheads $     66,630 $       53,650 Total manufacturing cost $ 1,39,030 $   1,54,900 Add: Beginning work in process inventory $     18,800 $       23,400 Total cost of work in process $ 1,57,830 $   1,78,300 Deduct: Ending work in process inventory $     25,600 $       20,600 Cost of goods manufactured $ 1,32,230 $   1,57,700 Requirement 2 Garcon company Pepper company Beginning finished goods inventory $     13,400 $       19,450 Add: Cost of goods manufactured $ 1,32,230 $   1,57,700 Cost of goods available for sale $ 1,45,630 $   1,77,150 Deduct: Ending finished goods inventory $     17,450 $       16,000 Cost of goods sold $ 1,28,180 $   1,61,150

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