The following data is provided for Garcon Company and Pepper Company. Beginning finished goods inventory Beginning...

1) Income Statement
	Garcon Company	Pepper Company
Sales	$201,030	$312,510
Less: Cost of Goods Sold	($120,400)	($162,230)
Gross Margin	$80,630	$150,280
Less: Operating expenses:
General and administrative expenses	($28,500)	($46,000)
Selling expenses	($60,800)	($47,500)
Net Operating Income	($8,670)	$56,780
Working notes:
Beginning raw materials inventory (direct materials)	$10,600	$9,150
Add: Raw materials purchases	$44,500	$62,500
Total Raw Materials Available	$55,100	$71,650
Less: Ending raw materials inventory (direct materials)	($7,600)	($7,600)
Total Raw Materials Used	$47,500	$64,050
Add: Direct Labor	$21,000	$38,200
Add: Rental cost on factory equipment	$34,750	$23,500
Add: Factory utilities	$9,150	$15,000
Add: Factory supplies used (indirect materials)	$13,600	$5,800
Add: Indirect labor	$2,200	$8,380
Add: Repairs-Factory equipment	$5,900	$3,000
Total Manufacturing Costs	$134,100	$157,930
Add: Beginning work-in process inventory	$16,800	$22,500
Less: Ending work-in process inventory	($22,900)	($21,400)
Cost of Goods Manufactured	$128,000	$159,030
Add: Beginning finished goods inventory	$13,000	$16,300
Less: Ending finished goods inventory	($20,600)	($13,100)
Cost of Goods Sold	$120,400	$162,230

2-a) Partial Balance Sheet
GARCON COMPANY
Partial Balance Sheet
As of December 31, 2019
Cash		$33,000
Accounts receivable, net		$15,800
Inventories:
Ending finished goods inventory	$20,600
Ending work-in process inventory	$22,900
Ending raw materials inventory	$7,600	$51,100
Factory utilities		$9,150
Total Current Assets		$109,050
2-b) Partial Balance Sheet
PEPPER COMPANY
As of December 31, 2019
Cash		$18,200
Accounts receivable, net		$19,450
Inventories:
Ending finished goods inventory	$13,100
Ending work-in process inventory	$21,400
Ending raw materials inventory	$7,600	$42,100
Factory utilities		$15,000
Total Current Assets		$94,750