The following data is provided for Garcon Company and Pepper

The following data is provided for Garcon Company and Pepper Company arcon epper an $ 12,000 14, 500 7,250 27,000 19,000 17, 650 22, 000 5, 300 9,000 8,200 21,000 1,250 4,780 33,000 50,000 195, 030 20,000 212,500 13, 200 s 16, 450 19, 950 9,000 22,750 35,000 13, 300 16,000 7,200 12,000 3,200 43,000 7,660 1,500 52,000 46,000 290, 010 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 Eactory supplies used General and administrative expenses Indirect labor Repairs-Factory equipment Raw materials purchases se11ing expenses Sales Cash Factory equipment, net Account receivable, net 15,700 115, 825 19, 450 xercise 14-10 Cost classification LO C2

Solution

Required 1 Garcon Pepper company Company Direct Materials Beginning raw materials inventory 7,250 9,000 Raw materials purchases 33,000 52,000 Raw materials available for use 40,250 61,000 Ending raw materials inventory 5,300 7,200 Direct materials used 34,950 53,800 Direct labor 19,000 35,000 Total prime costs 53,950 88,800 Required 2 Garcon Pepper company Company Direct labor 19,000 35,000 Factory overhead Rental cost on factory equipment 27,000 22,750 Factory utilities 9,000 12,000 Factory supplies used 8,200 3,200 Indirect labor 1,250 7,660 Repairs- factory equipment 4,780 1,500 total factory overhead 50,230 47,110 total conversion costs 69,230 82,110