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	$ 14,100	$ 19,150
Work in process inventory, beginning	15,800	21,900
Raw materials inventory, beginning	9,900	11,700
Rental cost on factory equipment	33,250	23,050
Direct labor	20,000	44,200
Finished goods inventory, ending	18,350	16,200
Work in process inventory, ending	27,700	20,400
Raw materials inventory, ending	7,400	9,600
Factory utilities	10,500	15,750
General and administrative expenses	23,000	56,500
Indirect labor	10,700	13,660
RepairsFactory equipment	5,300	2,050
Raw materials purchases	35,000	59,000
Selling expenses	60,000	46,900
Sales	291,180	396,330
Cash	24,000	19,200
Accounts receivable, net	16,800	23,200

Exercise 14-9 (Algo) Computing prime and conversion costs LO C2

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.

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

	Garcon Company	Pepper Company
Direct labor
Direct materials used
Factory overhead
Total prime costs

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

	Garcon Company	Pepper Company
Total conversion costs