[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 |
|
$ |
13,800 |
|
|
$ |
16,000 |
|
Beginning work in process inventory |
|
|
17,300 |
|
|
|
23,400 |
|
Beginning raw materials inventory (direct materials) |
|
|
8,100 |
|
|
|
10,500 |
|
Rental cost on factory equipment |
|
|
28,750 |
|
|
|
24,250 |
|
Direct labor |
|
|
21,000 |
|
|
|
36,200 |
|
Ending finished goods inventory |
|
|
20,300 |
|
|
|
16,000 |
|
Ending work in process inventory |
|
|
22,300 |
|
|
|
17,000 |
|
Ending raw materials inventory |
|
|
6,600 |
|
|
|
9,400 |
|
Factory utilities |
|
|
12,150 |
|
|
|
13,500 |
|
Factory supplies used (indirect materials) |
|
|
10,600 |
|
|
|
3,700 |
|
General and administrative expenses |
|
|
25,500 |
|
|
|
46,000 |
|
Indirect labor |
|
|
1,450 |
|
|
|
9,640 |
|
Repairs—Factory equipment |
|
|
5,420 |
|
|
|
3,900 |
|
Raw materials purchases |
|
|
38,000 |
|
|
|
57,000 |
|
Selling expenses |
|
|
62,400 |
|
|
|
56,500 |
|
Sales |
|
|
204,030 |
|
|
|
305,010 |
|
Cash |
|
|
21,000 |
|
|
|
17,700 |
|
Factory equipment, net |
|
|
227,500 |
|
|
|
121,825 |
|
Accounts receivable, net |
|
|
13,600 |
|
|
|
24,200 |
|
|
Required:
1. Compute the total prime costs for both Garcon
Company and Pepper Company.
2. Compute the total conversion costs for both
Garcon Company and Pepper Company.
|
|
|
Garcon Company |
Pepper Company |
Direct materials |
|
|
|
|
|
|
|
|
Raw materials available for use |
|
|
|
|
|
Direct materials used |
|
|
|
|
|
Total prime costs |
|
|
|
|
|
Garcon Company |
Pepper Company |
Direct labor |
|
|
Factory overhead |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total factory overhead |
|
|
Total conversion costs |
|
|