14-7. Using the following selected data from both Garcon Company and Pepper Company for the year ended December 31, compute 1) the cost of goods manufactured, and 2) the cost of goods sold. 1) Cost of Goods Manufactured Direct materials Raw materials inventory, beginning Add: Raw materials purchases Less: Raw materials inventory, ending Direct materials used Direct labor Factory overhead Rental cost on factory equipment Factory utilities Indirect labor RepairsFactory equipment Total factory overhead Total manufacturing costs Add: Work in process inventory, beginning Total cost of work in process Less: Work in process inventory, ending Cost of goods manufactured

1. Cost of Goods Manufactured

Direct materials
Raw materials inventory, beginning
Add: Raw materials purchases
Less: Raw materials inventory, ending
Direct materials used
Direct labor
Factory overhead
Rental cost on factory equipment
Factory utilities
Indirect labor
RepairsFactory equipment
Total factory overhead
Total manufacturing costs
Add: Work in process inventory, beginning
Total cost of work in process
Less: Work in process inventory, ending
Cost of goods manufactured

1. Cost of Goods Sold

Finished goods inventory, beginning
Add: Cost of goods manufactured
Cost of goods available for sale
Less: Ending finished goods inventory
Cost of goods sold

Pepper Company