
To compute:
Cost of Goods manufactured for −

Answer to Problem 8E
Solution:
Cost of Goods manufactured for −
Explanation of Solution
Garcon Company | |||
Cost of Goods manufactured | |||
Direct Material | |||
Beginning raw material inventory | 7,250 | ||
Add: Raw material purchases | 33,000 | ||
Raw materials available for use | 40,250 | ||
Less: Ending raw material inventory | 5,300 | ||
Direct Material used | 34,950 | ||
Direct Labor | 19,000 | ||
Factory overhead | |||
Rental cost on factory equipment | 27,000 | ||
Factory utilities | 9,000 | ||
Factory supplies used | 8,200 | ||
Indirect Labor | 1,250 | ||
Repairs - Factory equipment | 4,780 | ||
Total factory | 50,230 | ||
Total | 104,180 | ||
Add: Beginning Work in process inventory | 14,500 | ||
Total costs of work in process inventory | 118,680 | ||
Less: Ending work in process inventory | 22,000 | ||
Cost of goods manufactured | 96,680 |
The cost of goods manufactured for Garcon Company is explained as −
The cost of goods manufactured for Garcon Company = $ 96,680
Pepper Company | |||
Cost of Goods manufactured | |||
Direct Material | |||
Beginning raw material inventory | 9,000 | ||
Add: Raw material purchases | 52,000 | ||
Raw materials available for use | 61,000 | ||
Less: Ending raw material inventory | 7,200 | ||
Direct Material used | 53,800 | ||
Direct Labor | 35,000 | ||
Factory overhead | |||
Rental cost on factory equipment | 22,750 | ||
Factory utilities | 12,000 | ||
Factory supplies used | 3,200 | ||
Indirect Labor | 7,660 | ||
Repairs - Factory equipment | 1,500 | ||
Total factory overheads | 47,110 | ||
Total manufacturing costs | 135,910 | ||
Add: Beginning Work in process inventory | 19,950 | ||
Total costs of work in process inventory | 155,860 | ||
Less: Ending work in process inventory | 16,000 | ||
Cost of goods manufactured | 139,860 |
The cost of goods manufactured for Pepper Company is explained as −
The cost of goods manufactured for Pepper Company = $ 139,860
.
Thus, the costs of goods manufactured for both the companies have been computed.
To compute:
Cost of goods sold for −

Answer to Problem 8E
Solution:
The cost of goods sold for −
Explanation of Solution
The cost of goods sold for Garcon Company is $ 91,030.
The cost of goods sold for Pepper Company is $ 143,010.
Thus, the costs of goods sold for both the companies have been computed.
Want to see more full solutions like this?
Chapter 18 Solutions
Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
- Can you help me solve this general accounting question using valid accounting techniques?arrow_forwardI need guidance with this general accounting problem using the right accounting principles.arrow_forwardCan you solve this general accounting question with the appropriate accounting analysis techniques?arrow_forward
- Accounting solutionarrow_forwardJoe and Ethan each own 50% of JH Corporation, a calendar year taxpayer. Distributions from JH are: $750,000 to Joe on April 1 and $250,000 to Ethan on May 1. JH’s current E & P is $300,000 and its accumulated E & P is $600,000. How much of the accumulated E & P is allocated to Ethan’s distribution? a. $0b. $75,000c. $150,000d. $300,000e. None of the above b or c?arrow_forwardPlease provide the accurate answer to this general accounting problem using appropriate methods.arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





