FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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### Required Information

**[The following information applies to the questions displayed below.]**

The following data is provided for Garcon Company and Pepper Company for the year ended December 31.

| Description                        | Garcon Company | Pepper Company |
| ---------------------------------- | -------------- | -------------- |
| Finished goods inventory, beginning| $13,200        | $16,900        |
| Work in process inventory, beginning| 17,900        | 21,150         |
| Raw materials inventory, beginning | 8,600          | 11,250         |
| Rental cost on factory equipment   | 33,750         | 26,650         |
| Direct labor                       | 23,200         | 39,400         |
| Finished goods inventory, ending   | 21,350         | 16,900         |
| Work in process inventory, ending  | 28,000         | 17,600         |
| Raw materials inventory, ending    | 7,900          | 7,400          |
| Factory utilities                  | 9,150          | 14,250         |
| General and administrative expenses| 23,500         | 44,000         |
| Indirect labor                     | 14,000         | 14,920         |
| Repairs—Factory equipment          | 4,940          | 3,600          |
| Raw materials purchases            | 42,500         | 60,000         |
| Selling expenses                   | 56,400         | 55,300         |
| Sales                              | 297,270        | 395,040        |
| Cash                               | 25,000         | 23,200         |
| Accounts receivable, net           | 16,000         | 24,700         |

---

**Tasks:**

1. Compute the total prime costs for both Garcon Company and Pepper Company.
2. Compute the total conversion costs for both Garcon Company and Pepper Company.

### Instructions:

Complete this question by entering your answers in the tabs below.

#### Required 1

**Compute the total prime costs for both Garcon Company and Pepper Company.**

**Prime Costs Calculation Table:**

| Description       | Garcon Company | Pepper Company |
| ----------------- | -------------- | -------------- |
| (Detail calculations for prime costs go here) |                |                |
|                   |                |                |
|                   |
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Transcribed Image Text:### Required Information **[The following information applies to the questions displayed below.]** The following data is provided for Garcon Company and Pepper Company for the year ended December 31. | Description | Garcon Company | Pepper Company | | ---------------------------------- | -------------- | -------------- | | Finished goods inventory, beginning| $13,200 | $16,900 | | Work in process inventory, beginning| 17,900 | 21,150 | | Raw materials inventory, beginning | 8,600 | 11,250 | | Rental cost on factory equipment | 33,750 | 26,650 | | Direct labor | 23,200 | 39,400 | | Finished goods inventory, ending | 21,350 | 16,900 | | Work in process inventory, ending | 28,000 | 17,600 | | Raw materials inventory, ending | 7,900 | 7,400 | | Factory utilities | 9,150 | 14,250 | | General and administrative expenses| 23,500 | 44,000 | | Indirect labor | 14,000 | 14,920 | | Repairs—Factory equipment | 4,940 | 3,600 | | Raw materials purchases | 42,500 | 60,000 | | Selling expenses | 56,400 | 55,300 | | Sales | 297,270 | 395,040 | | Cash | 25,000 | 23,200 | | Accounts receivable, net | 16,000 | 24,700 | --- **Tasks:** 1. Compute the total prime costs for both Garcon Company and Pepper Company. 2. Compute the total conversion costs for both Garcon Company and Pepper Company. ### Instructions: Complete this question by entering your answers in the tabs below. #### Required 1 **Compute the total prime costs for both Garcon Company and Pepper Company.** **Prime Costs Calculation Table:** | Description | Garcon Company | Pepper Company | | ----------------- | -------------- | -------------- | | (Detail calculations for prime costs go here) | | | | | | | | |
### Cost Computation Exercise

#### Objectives:

1. Compute the total prime costs for both Garcon Company and Pepper Company.
2. Compute the total conversion costs for both Garcon Company and Pepper Company.

#### Instructions:

Complete this exercise by entering your answers in the tabs below.

#### Required Tasks:

**Required 1** | **Required 2**

**Tab 2:** 
Compute the total conversion costs for both Garcon Company and Pepper Company.

#### Input Table:

|                        |  Garcon Company   |  Pepper Company   |
|------------------------|-------------------|-------------------|
|                        |                   |                   |
|                        |                   |                   |
|                        |                   |                   |
| Total conversion costs |                   |                   |

**Navigate to Required 1** to address the first task.

### Graph/Diagram Explanation:
The table provided is designed to input the computation fields for Garcon Company and Pepper Company. The columns each represent one of the companies. The rows are for entering specific cost components to calculate the conversion costs. There are blank rows provided for detailed cost entries leading to the final total conversion costs at the bottom.

In the interactive part of the exercise, users are expected to fill in this table with the appropriate cost amounts based on their calculations.

#### Navigation Instructions:
Use the “Required 1” and “Required 2” tabs to toggle between the tasks. The "Required 2" tab focuses specifically on computing the total conversion costs for both companies. After you finish with "Required 1", click the blue button on the left to proceed to "Required 2".
expand button
Transcribed Image Text:### Cost Computation Exercise #### Objectives: 1. Compute the total prime costs for both Garcon Company and Pepper Company. 2. Compute the total conversion costs for both Garcon Company and Pepper Company. #### Instructions: Complete this exercise by entering your answers in the tabs below. #### Required Tasks: **Required 1** | **Required 2** **Tab 2:** Compute the total conversion costs for both Garcon Company and Pepper Company. #### Input Table: | | Garcon Company | Pepper Company | |------------------------|-------------------|-------------------| | | | | | | | | | | | | | Total conversion costs | | | **Navigate to Required 1** to address the first task. ### Graph/Diagram Explanation: The table provided is designed to input the computation fields for Garcon Company and Pepper Company. The columns each represent one of the companies. The rows are for entering specific cost components to calculate the conversion costs. There are blank rows provided for detailed cost entries leading to the final total conversion costs at the bottom. In the interactive part of the exercise, users are expected to fill in this table with the appropriate cost amounts based on their calculations. #### Navigation Instructions: Use the “Required 1” and “Required 2” tabs to toggle between the tasks. The "Required 2" tab focuses specifically on computing the total conversion costs for both companies. After you finish with "Required 1", click the blue button on the left to proceed to "Required 2".
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