The following data is provided for Garcon Company and Pepper Company. Exercise 1

Question

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

Exercise 14-8 Cost of goods manufactured and cost of goods sold computation LO P1, P2

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.

What is the total manufacturing costs? I do not know it

Garcon Company Pepper Company Beginning finished goods inventory $ 14,200 $ 19,750 Beginning work in process inventory 17,100 20,550 Beginning raw materials inventory 10,800 15,000 Rental cost on factory equipment 30,750 22,900 Direct labor 20,200 37,000 Ending finished goods inventory 18,500 13,200 Ending work in process inventory 28,000 18,400 Ending raw materials inventory 5,800 8,400 Factory utilities 13,950 14,500 Factory supplies used 11,800 5,400 General and administrative expenses 32,500 46,000 Indirect labor 1,400 8,020 Repairs—Factory equipment 7,220 3,350 Raw materials purchases 40,500 66,000 Selling expenses 50,800 49,000 Sales 222,030 317,510 Cash 31,000 24,200 Factory equipment, net 227,500 151,825 Accounts receivable, net 16,400 21,450

Explanation / Answer

1

2

Garcon Company Pepper Company Direct Material Beginning raw materials inventory 10,800 15,000 Add Raw materials purchases 40,500 66,000 Raw Material Avialable for Use 51,300 81,000 Less Ending raw materials inventory 5,800 8,400 Direct Material Used 45,500 72,600 Direct Labor 20,200 37,000 Factory Ovehead Indirect labor 1400 8020 Factory supplies used 11800 5400 Factory utilities 13950 14500 Rental cost on factory equipment 30750 22900 Repairs—Factory equipment 7220 3350 Total Factory overhead 65120 54170 Total Manufacturing Cost 1,30,820 1,63,770 Add Beginning work in process inventory 17,100 20,550 Total Cost of Work in Progress 1,47,920 1,84,320 LessEnding work in process inventory 28,000 18,400 Cost of goods Manufactured 1,19,920 1,65,920

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