Refer to the data in Exercise 18-7. For each company, prepare 

(1) An income statement and 

(2) The current assets section of the balance sheet.

Data From Exercise 18-7

Using the following data from both Garcon Company and Pepper Company for the year ended December 31 to compute 

(1) The cost of goods manufactured and 

(2) The cost of goods sold for each company.

Transcribed Image Text:

Garcon Co. Pepper Co. Finished goods inventory, beginning.... Work in process inventory, beginning..... Raw materials inventory, beginning.. $ 12,000 $ 16,450 14,500 19,950 7,250 9,000 Rental cost on factory equipment. 27,000 22,750 Direct labor..... Finished goods inventory, ending... Work in process inventory, ending.... 19,000 35,000 17,650 13,300 22,000 16,000 Raw materials inventory, ending. 5,300 7,200 Factory utilities.... 9,000 12,000 General and administrative expenses 21,000 43,000 Indirect labor.... 9,450 10,860 Repairs-Factory equipment . 4,780 1,500 Raw materials purchases 33,000 52,000 Selling expenses 50,000 46,000 Sales ... 195,030 290,010 Cash...... 20,000 15,700 Accounts receivable, net. 13,200 19,450 ....