Required information Use the following information for the E

Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

The following data is provided for Garcon Company and Pepper Company.

	Garcon Company		Pepper Company
Beginning finished goods inventory		$	14,800			$	17,650
Beginning work in process inventory			15,800				23,850
Beginning raw materials inventory			8,300				14,850
Rental cost on factory equipment			29,000				26,200
Direct labor			24,400				43,400
Ending finished goods inventory			20,900				16,700
Ending work in process inventory			24,700				17,400
Ending raw materials inventory			6,200				9,000
Factory utilities			14,250				15,500
Factory supplies used			10,300				5,800
General and administrative expenses			32,000				55,000
Indirect labor			1,800				7,780
Repairs—Factory equipment			7,580				3,250
Raw materials purchases			39,000				62,500
Selling expenses			52,000				51,400
Sales			241,530				327,510
Cash			35,000				16,200
Factory equipment, net			272,500				121,825
Accounts receivable, net			16,800				20,450

Garcon Company Pepper Company Direct materials Raw materials available for use Direct materials used Factory overhead Total factory overhead Total manufacturing costs Total cost of work in process Cost of goods manufactured

Solution

Solution:

Part 1 ---

Schedule of Cost of Goods Manufactured

Garcon Company

Pepper Company

Direct materials:

Beginning raw materials inventory

$8,300

$14,850

Plus: Raw materials purchases

$39,000

$62,500

Raw materials available for use

$47,300

$77,350

Less: Ending raw materials inventory

$6,200

$9,000

A

Direct materials used

$41,100

$68,350

B

Direct Labor Costs

$24,400

$43,400

Factory Overhead:

Factory Utilities

$14,250

$15,500

Factory supplies used

$10,300

$5,800

Indirect labor

$1,800

$7,780

Repairs - factory equipment

$7,580

$3,250

Rental cost on factory equipment

$29,000

$26,200

C

Total Factory Overhead

$62,930

$58,530

(A+B+C)

Total Manufacturing costs

$128,430

$170,280

Plus: Beginning work in process inventory

$15,800

$23,850

Total cost of work in process

$144,230

$194,130

Less: Ending work in process inventory

$24,700

$17,400

Cost of Goods Manufactured

$119,530

$176,730

Part 2 – Cost of Goods Sold

Schedule of Cost of Goods Sold

Garcon Company

Pepper Company

Cost of Goods Manufactured

$119,530

$176,730

Plus: Beginning finished goods inventory

$14,800

$17,650

Cost of goods available for sale

$134,330

$194,380

Less: Ending finished goods inventory

$20,900

$16,700

Cost of goods sold

$113,430

$177,680

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	Schedule of Cost of Goods Manufactured
		Garcon Company	Pepper Company
	Direct materials:
	Beginning raw materials inventory	$8,300	$14,850
	Plus: Raw materials purchases	$39,000	$62,500
	Raw materials available for use	$47,300	$77,350
	Less: Ending raw materials inventory	$6,200	$9,000
A	Direct materials used	$41,100	$68,350
B	Direct Labor Costs	$24,400	$43,400
	Factory Overhead:
	Factory Utilities	$14,250	$15,500
	Factory supplies used	$10,300	$5,800
	Indirect labor	$1,800	$7,780
	Repairs - factory equipment	$7,580	$3,250
	Rental cost on factory equipment	$29,000	$26,200
C	Total Factory Overhead	$62,930	$58,530
(A+B+C)	Total Manufacturing costs	$128,430	$170,280
	Plus: Beginning work in process inventory	$15,800	$23,850
	Total cost of work in process	$144,230	$194,130
	Less: Ending work in process inventory	$24,700	$17,400
	Cost of Goods Manufactured	$119,530	$176,730