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	$ 12,800	$ 18,550
Work in process inventory, beginning	18,100	19,950
Raw materials inventory, beginning	11,700	10,350
Rental cost on factory equipment	27,500	26,200
Direct labor	20,800	41,400
Finished goods inventory, ending	20,450	13,200
Work in process inventory, ending	27,700	16,600
Raw materials inventory, ending	7,800	8,800
Factory utilities	12,000	17,250
General and administrative expenses	31,500	47,500
Indirect labor	12,400	11,560
RepairsFactory equipment	6,260	1,850
Raw materials purchases	36,000	55,000
Selling expenses	59,200	46,300
Sales	291,090	390,660
Cash	27,000	18,200
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.

3. Compute the total prime costs for both Garcon Company and Pepper Company. 4. Compute the total conversion costs for both Garcon Company and Pepper Company.