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	$ 13,100	$ 18,550
Work in process inventory, beginning	15,700	22,800
Raw materials inventory, beginning	7,800	11,550
Rental cost on factory equipment	31,500	23,800
Direct labor	19,400	39,400
Finished goods inventory, ending	19,400	13,900
Work in process inventory, ending	27,100	18,600
Raw materials inventory, ending	7,100	7,600
Factory utilities	10,350	13,250
General and administrative expenses	22,000	45,000
Indirect labor	12,850	13,700
RepairsFactory equipment	5,660	2,100
Raw materials purchases	37,500	67,500
Selling expenses	62,000	50,500
Sales	294,000	395,840
Cash	34,000	22,700
Accounts receivable, net	15,800	22,700

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

Part 2

1. Compute the total prime costs for both Garcon Company and Pepper Company. 2. Compute the total conversion costs for both Garcon Company and Pepper Company.