FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
15th Edition
ISBN: 9781265564483
Author: Wild
Publisher: MCG
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Question
Chapter 18, Problem 8E
Requirement 1
To determine
To compute:
Cost of Goods manufactured for −
Requirement 1

Expert Solution

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
.
Conclusion
Thus, the costs of goods manufactured for both the companies have been computed.
Requirement 2
To determine
To compute:
Cost of goods sold for −
Requirement 2

Expert Solution

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.
Conclusion
Thus, the costs of goods sold for both the companies have been computed.
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Chapter 18 Solutions
FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
Ch. 18 - Prob. 1DQCh. 18 - Prob. 2DQCh. 18 - Prob. 3DQCh. 18 - Prob. 4DQCh. 18 - Prob. 5DQCh. 18 - Prob. 6DQCh. 18 - Prob. 7DQCh. 18 - Prob. 8DQCh. 18 - Prob. 9DQCh. 18 - Prob. 10DQ
Ch. 18 - Prob. 11DQCh. 18 - Prob. 12DQCh. 18 - Prob. 13DQCh. 18 - Prob. 14DQCh. 18 - Prob. 15DQCh. 18 - Prob. 16DQCh. 18 - Prob. 17DQCh. 18 - Prob. 18DQCh. 18 - Prob. 19DQCh. 18 - List the four components of a schedule of cost of...Ch. 18 - Prepare a proper title for the annual schedule of...Ch. 18 - Describe the relations among the income statement,...Ch. 18 - Prob. 23DQCh. 18 - Prob. 24DQCh. 18 - Prob. 25DQCh. 18 - Prob. 1QSCh. 18 - Prob. 2QSCh. 18 - Prob. 3QSCh. 18 - Classifying product costs C2 Identify each of the...Ch. 18 - Prob. 5QSCh. 18 - Prob. 6QSCh. 18 - Prob. 7QSCh. 18 - Prob. 8QSCh. 18 - Prob. 9QSCh. 18 - Prob. 10QSCh. 18 - Prob. 11QSCh. 18 - Prob. 12QSCh. 18 - Prob. 13QSCh. 18 - QS 18-17
Raw materials inventory...Ch. 18 - Prob. 1ECh. 18 - Prob. 2ECh. 18 - Prob. 3ECh. 18 - Prob. 4ECh. 18 - Prob. 5ECh. 18 - Prob. 6ECh. 18 - Prob. 7ECh. 18 - Prob. 8ECh. 18 - Prob. 9ECh. 18 - Prob. 10ECh. 18 - Prob. 11ECh. 18 - Prob. 12ECh. 18 - Prob. 13ECh. 18 - Prob. 14ECh. 18 - Prob. 15ECh. 18 - Prob. 16ECh. 18 - Prob. 17ECh. 18 - Prob. 1APSACh. 18 - Prob. 2APSACh. 18 - Prob. 3APSACh. 18 - Problem 18-4A Ending inventory computation and...Ch. 18 - Prob. 5APSACh. 18 - Prob. 1BPSBCh. 18 - Prob. 2BPSBCh. 18 - Prob. 3BPSBCh. 18 - Prob. 4BPSBCh. 18 - Prob. 5BPSBCh. 18 - Prob. 18SPCh. 18 - Prob. 1BTNCh. 18 - Prob. 2BTNCh. 18 - Prob. 3BTNCh. 18 - Prob. 4BTNCh. 18 - Prob. 5BTNCh. 18 - Prob. 6BTNCh. 18 - Prob. 7BTNCh. 18 - Prob. 8BTNCh. 18 - Prob. 9BTN
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