The following data is provided for Garcon Company and Pepper Company for the year ended December 31.
Garcon
Company
Pepper
Company
Finished goods inventory, beginning
$ 12,100
$ 17,000
Work in process inventory, beginning
36,800
23,400
Raw materials inventory, beginning
9,900
34,100
Rental cost on factory equipment
30,000
22,150
Direct labor
25,000
41,000
Finished goods inventory, ending
17,750
13,400
Work in process inventory, ending
26,500
19,200
Raw materials inventory, ending
7,800
9,800
Factory utilities
13,200
16,250
General and administrative expenses
20,000
47,000
Indirect labor
11,750
11,760
Repairs-factory equipment
2,060
2,700
Raw materials purchases
37,000
55,000
Selling expenses
64,800
58,600
Sales
287,750
317,950
Cash
23,000
20,000
Accounts receivable, net
15,600
23,950
1. Prepare income statements for both Garcon Company and Pepper Company.
2. Prepare the current assets section of the balance sheet for each company.
Complete this question by entering your answers in the tabs below.
Req 1 Garcon Req 1 Pepper Req 2 Garcon Req 2 Pepper
Prepare the Income statement for Garcon Company.
GARCON COMPANY
Income Statement
For Year Ended December 31
Sales
Cost of goods sold
Finished goods inventory, beginning
Cost of goods manufactured
Raw materials purchases
Goods available for sale
Less: Finished goods inventory, ending
Cost of goods sold
Gross profit
General and administrative expenses
Selling expenses
Net income
