The following data is provided for Garcon Company and Pepper

The following data is provided for Garcon Company and Pepper Company. Pepper ompany $ 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 15, 700 115,825 19,450 Garcon 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 $ 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 Factory equipment, net Accounts receivable, net ercise 14-9 Preparing financial statements for a manufacturer L Prev 14 15 of 15

Solution

33000

GARCON COMPANY

Income statement

for the year ended december 31 2017

Garcon company
Beginning raw material inventory	7250
Raw material purchase	33000
less:ending rAw material inventory	(5300)
Raw material used		34950
Direct labor		19000
Factory overhead [27000rental+9000utilities+8200supplies+1250Indirect labor+4780repair]		50230
Total manufacturing cost		104180
Beginning work in process		14500
less:ending work in process		(22000)
Cost of goods manufactured		96680
beginning finished goods inventory		12000
less:ending finished goods inventory		(17650)
cost of goods sold		91030