1.

Required information [The following information applies to the questions displayed below] The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company. Advertising expense $ 28,750 Depreciation expenseoffice equipment 7,250 Depreciation expenseSelling equipment 8,600 Depreciation expenseFactory equipment 49,325 Raw materials purchases (all direct materials) 925,000 Maintenance expenSEFactory equipment 35,400 Factory utilities 33,000 Direct labor 675,480 Indirect labor 159,475 office salaries expense 63,000 Rent expenseOffice Space 22,000 Rent expenseSelling space 26,100 Rent expenseFactory building 76,800 Sales salaries expense 392,560 Using the following additional information for Leone Company, complete the requirements below. Raw materials inventory, beginning $ 166,850 Raw materials inventory, ending 182,000 Work in process inventory, beginning 15,700 Sales 4,462,500 Work in process inventory, ending 19,380 Finished goods inventory, beginning 167,350 Finished goods inventory, ending 136,490 Required: 1. Prepare the schedule of cost of goods manufactured for the current year. 2. Prepare the current year income statement. Direct materials 166,850 925,000 Raw materials inventory, beginning Raw materials purchases 1 ,091,850 182,000 Raw materials available for use Less: Raw materials inventory, ending 909,850 675,480 Direct materials used Direct labor Factory overhead Indirect labor Factory utilities Maintenance expensc-FFactory equipment Depreciation expensc-FFactory equipment Rent expensc+Factory building 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 $ 354,000 1 ,939,330 15,700 1 ,955,030 19,380 1 ,935,650 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. Garcon Pepper Company Company Finished goods inventory, beginning $ 12,000 $ 16,450 Work in process inventory, beginning 14,500 19,950 Raw materials inventory, beginning 7,250 9,000 Rental cost on factory equipment 27,000 22,750 Direct labor 19,000 35,000 Finished goods inventory, ending 17,650 13,300 Work in process inventory, ending 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 RepairsFactory 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 1. Prepare income statements for both Garcon Company and Pepper Company. 2. Prepare the current assets section of the balance sheet for each company. Req 1 Garcon Req 1 Pepper Req 2 Garcon Req 2 Pepper Prepare the income statement for Garcon Company. 69 Cost of goods sold: 69 Finished goods inventory, beginning Cost of goods manufactured Goods available for sale Less: Finished goods inventory, ending Cost of goods sold Gross prot 50,00 95,40 $ (145,400) 0 Selling expenses General and administrative expenses Req 1 Garcon Req 1 Pepper Req 2 Garcon Req 2 Pepper Prepare the income statement for Pepper Company. Cost of goods sold: Finished goods inventory, beginning Cost of goods manufactured Goods available for sale Less: Finished goods inventory, ending 13,300 Gross prot _ 286,860 Selling expenses _ 46,000 General and administrative expenses _ 43,000 Req 1 Garcon Req 1 Pepper Req 2 Garcon Req 2 Pepper Prepare the current asset section of the balance sheet for Garcon Compan GARCON COMPANY Balance Sheet-Current Assets Section December 31 Cash Accounts receivable, net Raw materials inventory Work in process inventory Finished goods inventory Total current assets $ 0Req 1 Garcon Req 1 Pepper |Req 2 Garcon : Req 2 Pepper Prepare the current asset section of the balance sheet for Pepper Company. PEPPER COMPANY Balance Sheet-Current Assets Section December 31 Cash Accounts receivable, net Raw materials inventory Work in process inventory Finished goods inventory Total current assets 0