Chapter 14 Ex 2 #2

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	$ 14,500	$ 16,150
Work in process inventory, beginning	17,600	23,700
Raw materials inventory, beginning	11,500	11,550
Rental cost on factory equipment	34,750	25,750
Direct labor	22,200	38,600
Finished goods inventory, ending	17,000	13,900
Work in process inventory, ending	25,600	17,600
Raw materials inventory, ending	5,500	7,200
Factory utilities	14,550	12,500
General and administrative expenses	33,000	53,500
Indirect labor	10,850	14,140
RepairsFactory equipment	5,900	2,000
Raw materials purchases	37,500	56,500
Selling expenses	51,600	47,800
Sales	298,560	388,770
Cash	27,000	19,700
Accounts receivable, net	15,600	23,700

1. Prepare income statements for both Garcon Company and Pepper Company. 2. Prepare the current assets section of the balance sheet for each company.