Prepare income statements for both Garcon Company and Pepper Company.

Using the following data,


                                                                Garcon Company           Pepper Company    
  Beginning finished goods inventory           $     13,900                 $     18,550          
  Beginning work in process inventory                 18,100                       21,000          
  Beginning raw materials inventory                 8,500                       10,350          
  Rental cost on factory equipment                 34,250                       26,800          
  Direct labor                 23,400                       39,800          
  Ending finished goods inventory                 17,750                       15,100          
  Ending work in process inventory                 26,500                       21,000          
  Ending raw materials inventory                 7,400                       9,200          
  Factory utilities                 13,800                       13,250          
  Factory supplies used                 12,400                       5,700          
  General and administrative expenses                 27,500                       53,500          
  Indirect labor                 2,300                       7,780          
  Repairs—Factory equipment                 7,460                       1,950          
  Raw materials purchases                 43,500                       61,000          
  Selling expenses                 63,200                       57,100          
  Sales                 208,530                       292,510          
  Cash                 32,000                       16,700          
  Factory equipment, net                 232,500                       154,825          
  Accounts receivable, net                 13,800                       21,200          


1-a.     Prepare income statements for both Garcon Company and Pepper Company.














2     Prepare the current assets section of the balance sheet for each company.

Complete the below table to calculate the cost of goods manufactured for both Garcon Company and Pepper Company.

Using the following data,
     

	Garcon Company					Pepper Company
Beginning finished goods inventory		$	11,000			$	20,500
Beginning work in process inventory			19,000				22,000
Beginning raw materials inventory			13,000				13,000
Rental cost on factory equipment			33,000				26,000
Direct labor			18,000				34,000
Ending finished goods inventory			18,500				11,500
Ending work in process inventory			25,000				15,000
Ending raw materials inventory			7,700				9,800
Factory utilities			8,000				15,000
Factory supplies used			11,000				2,700
General and administrative expenses			22,000				40,000
Indirect labor			1,250				7,660
Repairs—Factory equipment			4,780				1,500
Raw materials purchases			38,000				55,000
Selling expenses			50,000				46,000
Sales			195,030				290,010
Cash			20,000				15,700
Factory equipment, net			212,500				115,825
Accounts receivable, net			13,200				19,450

1.     Complete the below table to calculate the cost of goods manufactured for both Garcon Company and Pepper Company.


2.   Complete the below table to calculate the cost of goods sold for both Garcon Company and Pepper Company.