The following information applies to the questions displayed below. The following data is provided for Garcon Company and Pepper Company. Pepper Garcon 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 proces3 inventory Ending raw materials inventory Factory utilities Company 13,500 16,600 16,500 23,700 7,00010,950 25,150 35, 000 15,700 16, 400 7, 600 27,000 24,000 20,000 26,800 7,100 9,900 10, 600 14,250 5, 600 Factory supplies used General and administrative expenses 32,000 50,500 Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses 2,350 7,220 33, 500 51,200 244, 530 34, 000 262, 500 9,880 3, 700 70,000 52, 300 330,010 7,200 175, 825 Sales Cash Faotory equipment, net Accounte receivable, net
Answer
1) Calculation for total prime costs
Garcon Company Pepper Company
Direct material
Beginning raw materials inventory 7000 10950
Add: Raw materials purchases 33500 70000
Raw material available for use 40500 80950
less: Ending raw materials inventory (7100) (7600)
Direct material Used 33400 73350
Direct labour 24000 35000
Total Prime cost $57400 $57400
2) Calculation for total conversion costs
Garcon Company Pepper Company
Direct labour 24000 35000
Factory overhead
Rental cost on factory equipment 27000 25150
Factory utilities 9900 14200
Factory supplies used 10600 5600
Indirect labor 2350 9880
Repairs—Factory equipment 7220 3700
Total factory overhead 57070 58530
Total conversion cost $81070 $93530
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