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	$ 14,000	$ 16,600
Work in process inventory, beginning	16,000	20,100
Raw materials inventory, beginning	9,100	10,200
Rental cost on factory equipment	31,750	26,200
Direct labor	19,200	44,600
Finished goods inventory, ending	18,500	16,200
Work in process inventory, ending	27,100	19,200
Raw materials inventory, ending	6,000	7,600
Factory utilities	11,250	14,000
General and administrative expenses	21,500	49,500
Indirect labor	14,200	14,200
RepairsFactory equipment	5,780	2,900
Raw materials purchases	46,000	61,000
Selling expenses	63,200	58,900
Sales	271,050	375,390
Cash	24,000	15,700
Accounts receivable, net	15,200	21,450

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

GARCON COMPANY
Income Statement
For Year Ended December 31
Sales
Cost of goods sold:
Goods available for sale	0
Cost of goods sold		0
Gross profit
Net income		$0

PEPPER COMPANY
Income Statement
For Year Ended December 31
Cost of goods sold:
Goods available for sale	0
Cost of goods sold		0
Net income		$0

GARCON COMPANY
Balance SheetCurrent Assets Section
December 31
Total current assets	$0

PEPPER COMPANY

Balance SheetCurrent Assets Section

December 31

Total current assets$0

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.