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
Repairs—Factory 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.