Using the following data from both Garçon company and Popper company for the year ended December 31th to compute (1) the cost of goods manufactory and (2) the cost of goods sold for each company. Hint: Not all information is needed for the solution
Garcon Co. Pepper Co.
Finished Goods inventory, beginning $12,000 $16, 450
Work-in-process inventory, beginning 14,500 19,950
Raw material inventory, beginning 7,250 9,000
Rental cost on Factory equipment 27,000 22,750
Direct labor 19,000 35,000
Finished goods inventory, ending 17,650 13,300
Work in process inventory, ending 22,000 16,000
Raw material inventory, ending 5,300 7.200
Factory utilities 9,000 12,000
General and administrative expenses 21,000 43,000
Indirect Labor 9,450 10,860
Repairs -Factory equipment 4,780 1, 500
Raw Materials Purchases 33,000 52,000
Selling expenses 50.00 46,000
Sales 195,030 290,010
Cash 20,000 15,700
Accounts receivable, net 13,200 19,450

= Beginning raw material Inventory + Raw material Purchases - Ending Raw material Inventory + Direct labor + Rental cost of Factory Equipment + Factory Utilities + Indirect Labor + Repairs-Factory Equipments + Beginning Work in Progress - Ending Work in progress

= 7,250 + 33,000 - 5,300 + 19,000 + 27,000 + 9,000 + 9,450 + 4,780 + 14,500 - 22,000

= $96,680

What was the cost of goods manufactured for Popper Company?

Using the same formula as above:

= 9,000 + 52,000 - 7,200 + 35,000 + 22,750 + 12,000 + 10,860 + 1,500 + 19,950 - 16,000

= $139,860

What is the cost of goods sold for Garcon Company?

= Beginning finished goods + Cost of goofs manufactured - Ending finished goods

= 12,000 + 96,680 - 17,650

= $91,030

What is the cost of goods sold for Pepper Company?

Using the same formula as above:

= 16,450 + 139,860 - 13,300

= $143,010

Please note that Factory supplies used is missing in question and so was not added to cost of goods manufactured.

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