(1)Garcon Company | Pepper Company (2) Finished goods inventory, beginning $ 13,200 / $ 16,750 Work in process inventory, beginning 18,000/ 22,650 Raw materials inventory, beginning 9,800 / 12,750 Rental cost on factory equipment 30, 250/26, 350 Direct labor 19, 400 / 39,400 Finished goods inventory, ending 17,300/16, 400 Work in process inventory, ending 26, 200/20, 400 Raw materials inventory, ending 8,000 / 9,200 Factory utilities 14, 100/13, 750 General and administrative expenses 27,500/53,500 Indirect labor 12, 150/12, 260 Repairs -Factory equipment 4, 820/2, 350 Raw materials purchases 47,000 / 67,500 Selling expenses 62, 400 / 54,400 Sales 295, 320/394, 170 Cash 29, 000/24, 200 Accounts receivable, net 15.800 / 23.450

(1)Garcon Company | Pepper Company (2) Finished goods inventory, beginning $ 13,200 / $ 16,750 Work in process inventory, beginning 18,000/ 22,650 Raw materials inventory, beginning 9,800 / 12,750 Rental cost on factory equipment 30, 250/26, 350 Direct labor 19, 400 / 39,400 Finished goods inventory, ending 17,300/16, 400 Work in process inventory, ending 26, 200/20, 400 Raw materials inventory, ending 8,000 / 9,200 Factory utilities 14, 100/13, 750 General and administrative expenses 27,500/53,500 Indirect labor 12, 150/12, 260 Repairs -Factory equipment 4, 820/2, 350 Raw materials purchases 47,000 / 67,500 Selling expenses 62, 400 / 54,400 Sales 295, 320/394, 170 Cash 29, 000/24, 200 Accounts receivable, net 15.800 / 23.450

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 27E: Selected information concerning the operations of a company for the year ended December 31 is as...

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

(1)Garcon Company | Pepper Company (2) Finished goods inventory,
beginning $ 13,200 / $ 16, 750 Work in process inventory, beginning
18,000/ 22,650 Raw materials inventory, beginning 9, 800/12, 750 Rental cost
on factory equipment 30, 250/26, 350 Direct labor 19, 400 / 39,400 Finished
goods inventory, ending 17,300 / 16, 400 Work in process inventory, ending
26, 200/20, 400 Raw materials inventory, ending 8, 000/ 9,200 Factory utilities
14, 100/13, 750 General and administrative expenses 27, 500/53, 500 Indirect
labor 12, 150 / 12, 260 Repairs-Factory equipment 4, 820/2, 350 Raw
materials purchases 47,000/67,500 Selling expenses 62, 400 / 54,400 Sales
295, 320/394, 170 Cash 29, 000/24, 200 Accounts receivable, net
15,800 / 23,450

pare the income statement for Pepper Company.
Sales
Cost of goods sold:
Finished goods inventory, beginning
Cost of goods manufactured
PEPPER COMPANY
Income Statement
For Year Ended December 31
Goods available for sale
Less: Finished goods inventory, ending
Cost of goods sold
Gross profit
General and administrative expenses
Net income
$
16,750
166,460 X
183,210
$
394,170
183,210
210,960
$ 210,960

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