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Subject:AccountingPrice:2.85 Bought3
Required information [The following information applies to the questions displayed below.] The following data is provided for Garcon Company and Pepper Company. $ Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory (direct materials) Rental cost on factory equipment Direct labor Ending finished goods inventory Ending work in process inventory Ending raw materials inventory Factory utilities Factory supplies used (indirect materials) General and administrative expenses Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses Sales Cash Factory equipment, net Accounts receivable, net Garcon Company 14,800 17,700 7,500 31,250 20, 200 18,800 26,200 6,500 10,350 9,400 28,000 1,900 6,620 37,000 50,800 219,030 30,000 272,500 15,000 Pepper Company $ 18,550 22,050 10,800 25,450 39,400 14,000 18,800 8,400 16,000 5, 100 46,000 9,880 1,600 64,000 59,500 330, 010 23,200 142,825 23, 200
Required: 1. Prepare income statements for both Garcon Company and Pepper Company. 2. Prepare the current assets section of the balance sheet for each company. Complete this question by entering your answers in the tabs below. Req 1 Garcon Req 1 Pepper Req 2 Garcon Req 2 Pepper Prepare the income statement for Garcon Company. 219,030 : GARCON COMPANY Income Statement For Year Ended December 31, 2019 Sales $ Less: Cost of goods sold Gross profit Operating expenses General and administrative expenses Selling expenses 219,030 Income (loss) before tax $ 219,030 Reg 1 Garcon Req 1 Pepper >
Complete this question by entering your answers in the tabs below. Req 1 Garcon Req 1 Pepper Req 2 Garcon Req 2 Pepper Prepare the current asset section of the balance sheet for Garcon Company. GARCON COMPANY Partial Balance Sheet As of December 31, 2019 Cash Accounts receivable, net Inventories: Raw materials inventory Work in process inventory Finished goods inventory Total current assets
Req 1 Garcon Req 1 Pepper Req 2 Garcon Req 2 Pepper Prepare the current asset section of the balance sheet for Pepper Compa PEPPER COMPANY Partial Balance Sheet As of December 31, 2019 Cash Accounts receivable, net Inventories: Raw materials inventory Work in process inventory Finished goods inventory Total current assets
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First, we have to calculate cost of goods sold
| Garcon Company | Pepper Company | |
| Direct materials | ||
| Beginning raw material inventory | $ 7,500 | $ 10,800 |
| Add: Raw materials purchased | $ 37,000 | $ 64,000 |
| Raw material available for use | $ 44,500 | $ 74,800 |
| Less: Ending raw material inventory | $ 6,500 | $ 8,400 |
| Direct material used | $ 38,000 | $ 66,400 |
| Direct labor | $ 20,200 | $ 39,400 |
| Factory overhead | ||
| Factory utilities | $ 10,350 | $ 16,000 |
| Rental cost on factory equipment | $ 31,250 | $ 25,450 |
| Factory supplies used | $ 9,400 | $ 5,100 |
| Indirect labor | $ 1,900 | $ 9,880 |
| Repairs - Factory equipment | $ 6,620 | $ 1,600 |
| Total manufacturing cost | $ 117,720 | $ 163,830 |
| Add: Beginning work in process inventory | $ 17,700 | $ 22,050 |
| Total cost of work in process | $ 135,420 | $ 185,880 |
| Less: Ending work in process inventory | $ 26,200 | $ 18,800 |
| Cost of goods manufactured | $ 109,220 | $ 167,080 |
| Garcon Company | Pepper Company | |
| Beginning finished goods inventory | $ 14,800 | $ 18,550 |
| Add: Cost of goods manufactured | $ 109,220 | $ 167,080 |
| Cost of goods available for sale | $ 124,020 | $ 185,630 |
| Less: Ending finished goods inventory | $ 18,800 | $ 14,000 |
| Cost of goods sold | $ 105,220 | $ 171,630 |
Income Statement
| Garcon Company | ||
| Income Statement | ||
| For Year December 31, 2019 | ||
| Sales | $ 219,030 | |
| Less: Cost of goods sold | $ 105,220 | |
| Gross profit | $ 113,810 | |
| Operating expenses | ||
| General and administrative expense | $ 28,000 | |
| Selling expense | $ 50,800 | |
| Total operating expense | $ 78,800 | |
| income (loss) before tax | $ 35,010 | |
| Pepper Company | ||
| Income Statement | ||
| For Year December 31, 2019 | ||
| Sales | $ 330,010 | |
| Less: Cost of goods sold | $ 171,630 | |
| Gross profit | $ 158,380 | |
| Operating expenses | ||
| General and administrative expense | $ 46,000 | |
| Selling expense | $ 59,500 | |
| Total operating expense | $ 105,500 | |
| income (loss) before tax | $ 52,880 | |
Balance Sheet
| Garcon Company | ||
| Balance Sheet (partial) | ||
| As at December 31, 2019 | ||
| Cash | $ 30,000 | |
| Accounts receivable | $ 15,000 | |
| Inventories: | ||
| Finished goods inventory | $ 18,800 | |
| Work in process inventory | $ 26,200 | |
| Raw material inventory | $ 6,500 | |
| Total current assets | $ 96,500 | |
| Pepper Company | ||
| Balance Sheet (partial) | ||
| As at December 31, 2019 | ||
| Cash | $ 23,200 | |
| Accounts receivable | $ 23,200 | |
| Inventories: | ||
| Finished goods inventory | $ 14,000 | |
| Work in process inventory | $ 18,800 | |
| Raw material inventory | $ 8,400 | |
| Total current assets | $ 87,600 | |
