Reference no: EM132620373

The following data is provided for Garcon Company and Pepper Company

Beginning finished goods inventory                       13,800                    $17,800

Beginning work in process inventory                     14,800                   21,300

Beginning raw materials inventory                          10,800                 13,500

Rental cost on factory equipment                           34,750                   25,900

Direct labor                                                           23,800            37,400

Ending finished goods inventory                                 18,350          14,300

Ending work in process inventory                                22,000             17,800

Ending raw materials inventory                                   7,300              9,600

Factory utilities                                                       10,200          12,500

Factory supplies used                                                11,800          3,900

General and administrative expenses                            22,000             43,500

Indirect labor                                                        1,550                     8,920

Repairs-Factory equipment                                         7,580                     1,950

Raw materials purchases                                            39,500                  53,500

Selling expenses                                                      50,800                   48,700

Sales                                                                    201,030                      342,510

Cash                                                                       30,000                   22,200

Factory equipment, net                                             282,500                    169,825

Accounts receivable, net                                             16,600                   21,950

Question 1: Prepare income statements for both Garcon Company and Pepper Company.

Question 2: Prepare the current assets section of the balance sheet for each company.