
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.
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Chapter 18 Solutions
Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
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