The following data is provided for Garcon Company and Pepper
Company.
Garcon Company | Pepper Company | ||||||||
Beginning finished goods inventory | $ | 14,900 | $ | 17,350 | |||||
Beginning work in process inventory | 18,700 | 20,850 | |||||||
Beginning raw materials inventory | 11,000 | 10,950 | |||||||
Rental cost on factory equipment | 27,250 | 26,950 | |||||||
Direct labor | 22,800 | 43,800 | |||||||
Ending finished goods inventory | 17,000 | 16,300 | |||||||
Ending work in process inventory | 25,000 | 20,400 | |||||||
Ending raw materials inventory | 6,800 | 7,400 | |||||||
Factory utilities | 10,500 | 17,250 | |||||||
Factory supplies used | 13,600 | 4,700 | |||||||
General and administrative expenses | 29,000 | 50,000 | |||||||
Indirect labor | 1,650 | 7,720 | |||||||
Repairs—Factory equipment | 6,860 | 1,750 | |||||||
Raw materials purchases | 43,500 | 66,500 | |||||||
Selling expenses | 63,600 | 58,000 | |||||||
Sales | 225,030 | 320,010 | |||||||
Cash | 28,000 | 22,700 | |||||||
Factory equipment, net | 247,500 | 145,825 | |||||||
Accounts receivable, net | 13,400 | 20,200 | |||||||
Required:
1. Complete the table to find the cost of goods
manufactured for both Garcon Company and Pepper Company for the
year ended December 31, 2017.
2. Complete the table to calculate the cost of
goods sold for both Garcon Company and Pepper Company for the year
ended December 31, 2017.
Solution
Cost of Goods Manufactured | ||
Garcon Company | Pepper Company | |
Direct Material | ||
Beginning raw material Inventory | $ 11,000.00 | $ 10,950.00 |
Add: Raw material Purchases | $ 43,500.00 | $ 66,500.00 |
Raw material Availabale for use | $ 54,500.00 | $ 77,450.00 |
Less: Ending Raw material Inventory | $ 6,800.00 | $ 7,400.00 |
Material Used in Production | $ 47,700.00 | $ 70,050.00 |
Direct labor | $ 22,800.00 | $ 43,800.00 |
Manufacturing Overheads | ||
Rental cost of Factory Equipment | $ 27,250.00 | $ 26,950.00 |
Factory Utilities | $ 10,500.00 | $ 17,250.00 |
Factory Supplies Used | $ 13,600.00 | $ 4,700.00 |
Indirect Labor | $ 1,650.00 | $ 7,720.00 |
Repairs-Factory Equipments | $ 6,860.00 | $ 1,750.00 |
Total Factory Overheads | $ 59,860.00 | $ 58,370.00 |
Total manufacturing Cost | $ 130,360.00 | $ 172,220.00 |
Add: Beginning Work in Progress | $ 18,700.00 | $ 20,850.00 |
Total Cost of Work in Progress | $ 149,060.00 | $ 193,070.00 |
Less: Ending Work in progress | $ 25,000.00 | $ 20,400.00 |
Cost of Goods Manufactured | $ 124,060.00 | $ 172,670.00 |
..
Cost of Good Sold | ||
Garcon Company | Pepper Company | |
Beginning Finished Inventory | $ 14,900.00 | $ 17,350.00 |
Add: Cost of Goods manufactured | $ 124,060.00 | $ 172,670.00 |
Cost of Goods Available for sale | $ 138,960.00 | $ 190,020.00 |
Less: Ending Finisged Goods Inventory | $ 17,000.00 | $ 16,300.00 |
Cost of Goods sold | $ 121,960.00 | $ 173,720.00 |
Get Answers For Free
Most questions answered within 1 hours.