he following data is provided for Garcon Company and Pepper Company. Garcon Company Pepper Company Beginning finished goods inventory $ 14,500 $ 18,250 Beginning work in process inventory 18,200 22,650 Beginning raw materials inventory (direct materials) 9,600 14,400 Rental cost on factory equipment 33,750 23,350 Direct labor 22,600 43,400 Ending finished goods inventory 21,500 15,300 Ending work in process inventory 25,300 21,400 Ending raw materials inventory 7,300 7,400 Factory utilities 11,850 17,500 Factory supplies used (indirect materials) 13,300 5,400 General and administrative expenses 29,500 53,500 Indirect labor 1,950 7,720 Repairs—Factory equipment 5,180 3,800 Raw materials purchases 39,000 53,500 Selling expenses 58,400 49,900 Sales 225,030 317,510 Cash 25,000 20,200 Factory equipment, net 242,500 160,825 Accounts receivable, net 16,400 20,450 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, 2019. 2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2019.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
he following data is provided for Garcon Company and Pepper Company.
| Garcon Company | Pepper Company | |||||||
| Beginning finished goods inventory | $ | 14,500 | $ | 18,250 | ||||
| Beginning work in process inventory | 18,200 | 22,650 | ||||||
| Beginning raw materials inventory (direct materials) | 9,600 | 14,400 | ||||||
| Rental cost on factory equipment | 33,750 | 23,350 | ||||||
| Direct labor | 22,600 | 43,400 | ||||||
| Ending finished goods inventory | 21,500 | 15,300 | ||||||
| Ending work in process inventory | 25,300 | 21,400 | ||||||
| Ending raw materials inventory | 7,300 | 7,400 | ||||||
| Factory utilities | 11,850 | 17,500 | ||||||
| Factory supplies used (indirect materials) | 13,300 | 5,400 | ||||||
| General and administrative expenses | 29,500 | 53,500 | ||||||
| Indirect labor | 1,950 | 7,720 | ||||||
| Repairs—Factory equipment | 5,180 | 3,800 | ||||||
| Raw materials purchases | 39,000 | 53,500 | ||||||
| Selling expenses | 58,400 | 49,900 | ||||||
| Sales | 225,030 | 317,510 | ||||||
| Cash | 25,000 | 20,200 | ||||||
| Factory equipment, net | 242,500 | 160,825 | ||||||
| 16,400 | 20,450 | |||||||
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, 2019.
2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2019.
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