Design Layout ReferencesMalings ReviewViewHelp Title MILNorm

Design Layout ReferencesMalings ReviewViewHelp Title ·M.ILNormal]TNo Spac. Iteiding 1Heading 2 Font Styles Exercise 14-8 Using the following data, compute (1) the cost of goods manufactured and (2) the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2017 Pepper Be 164 4.500 Beginning raw materials inventory 19.00 Ending work 5,30 9,00 actory supplies used General and administrative expenses Indirect labor 43,00 3300052,000 46,00 195,030 290010 0,00 Sell Sales Cash net 1. Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company 0

Solution

1. Computation of Cost of Goods Manufactured:

2. Computation of Cost of Goods Sold:

Income Statement:

	Garcon Company	Pepper Company
Direct Materials
Beginning Raw Materials Inventory	7,250	9,000
Add: Raw Materials Purchases	33,000	52,000
Raw Materials Available for Use	40,250	61,000
Less: Ending Raw Materials Inventory	5,300	7,200
Direct Materials Used	34,950	53,800
Direct Labor	19,000	35,000
Factory Overhead
Rental Cost of 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 Manufacturing Costs	104,180	135,910
Add: Beginning Work in Process Inventory	14,500	19,950
Total Cost of Work in Process	118,680	155,860
Less: Ending Work in Process Inventory	22,000	16,000
Cost of Goods Manufactured	96,680	139,860