The following data is provided for Garcon Company and Pepper

The following data is provided for Garcon Company and Pepper Company Beginning finished goods inven Beginning work in process inventor 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 $ 13,000 16,200 11,600 34,750 22,200 18,800 22,300 7,000 14,400 13,600 25,500 1,750 7,580 40,500 57,600 204,030 20,000 247,500 16,200 Pepper Company $ 18,400e 21,450 9,600 23,050 35,800 15,800 17,000 9,000 12,500 3,800 43,500 8,560 3,350 63,500 51,700 345,01e 21,700 166,825 23,200 tor

Solution

Solution:(1).   Calculation of cost of goods manufactured:

Solution:(2). Calculation of cost of goods sold:

Particulars	Garcon Co. ($)	Pepper Co. ($)
Direct materials
Beginning raw materials inventory	11,600	9,600
Add: Raw materials Purchased	40,500	63,500
Raw materials available for use	52,100	73,100
Less: Ending raw materials inventory	7,000	9,000
Direct materials used(a)	45,100	64,100
Direct labor(b)	22,200	35,800
Factory overhead
Rental cost on factory equipment	34,750	23,050
Factory utilities	14,400	12,500
Factory supplies used	13,600	3,800
Indirect labor	1,750	8,560
Repairs factory equipment	7,580	3,350
Total factory overhead(c)	72,080	51,260
Total Manufacturing cost(a+b+c=d)	139,380	151,160
Add: Beginning work in progress inventory(e)	16,200	21,450
Total cost of work in process(d+e=f)	155,580	172,610
Less: Ending work in progress inventory (g)	22,300	17,000
Cost of goods manufactured (f-g)	133,280	155,610