Maria Young is the sole stockholder of Purl of Great Price Company (POGP Company), which produces high-end knitted sweaters and sweater vests for sale to retail outlets. The company started in January of the current year, and employs three knitters (each of whom work 40 hours per week) and one office manager/knitting supervisor (this employee works 20 hours per week as office manager, and 20 hours per week as knitting supervisor). All wages are paid in cash at the end of each month. Each knitter has a knitting machine that is used about 2/3 of the knitter's time, the rest of the knitter's time being involved in hand knitting and piecing together the garments. The company also has a packaging machine used to wrap the garments in plastic for shipping, which is operated by the office manager/knitting supervisor approximately 5 hours per week. The knitting machines were purchased on January 1 of the current year, and cost $2,400 each, with an anticipated useful life of 10 years and no salvage value. The packaging machine was purchased on the same date and cost $4,800, with the same anticipated useful life and salvage value. Nov. 30 Trial Balance POGP Company Trial Balance November 30, 2018 Account Title Debit Credit Cash Accounts Receivable Supplies Materials 20,000 1,000 200 5,000 5,404 12,000 825 Work in Process Equipment Accumulated Depreciation Equipment Accounts Payable Common Stock Retained Earnings Dividends Sales Cost of Goods Sold Factory Overhead Wages Expense 150 10,000 12,000 18,096 307,500 255,040 15 13,750 330,490 330,490 Predetermined Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined factory overhead rate, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200 Estimated total Office Manager/Knitting Supervisor wages $36,000 Estimated office utilities $3,000 Estimated factory utilities $4,800 Estimated factory rent $24,000 Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Compute the predetermined factory overhead rate for the current year. $9.60 per DLH Feedback Reg. No. 12255 Job No. 83 Description Qty. Issued Unit Price Amount Yarn type B 700 skeins $5 $3.500 Total issued $3,500 Susan Blake Time Ticket No. 1255 Name: Work Description: Knitting/piecing Dates 12/01-12/ 15 12/16-12/31 Job No. Hours Worked Unit Price Amount 6 2 65 $20 $1,300 83103 20 2,060 Total Cost $3,360 Time Ticket No. 2274 Name: Josh Porter Work Description: Knitting/piecing Dates 12/01-12/ 15 12/16-12/31 Job No. Hours Worked Unit Price Amount 6 2 $20 $1,500 8388 201,760 Total cost $3,260 Time Ticket No. 3923 Name: Mary Jones Work Description: Knitting/piecing Dates Job No. Hours Worked Unit Price Amount 12/01-12/15 62 60 $20 $1,200 12/16-12/31 83 109 202 ,180 Total Cost $3,380 Job Cost Sheets On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materials Requisition table to add the materials to the Job Cost Sheet for Job 83. On December 15, review the Time Ticket tables to add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for Job 62 for the period December 1 through December 15. On December 31, the last work day of the year for the knitters, review Time Ticket tables to add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for Job 83 for the period December 16 through December 31. If there is no amount or an amount is zero, enter "O". If required, round your answers to the nearest cent. Job 62 100 units: Direct Materials $5,000 Sweaters Direct Labor $300 Factory Overhead $104 Total $5,404 Balance Dec. 1 Dec. 15 Total Cost Unit Cost Job 83 200 units: Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Balance Dec. 1 Dec. 10 Dec. 31 Total Cost Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materials Requisition table to journalize the entry to record the addition of the materials to Work in Process. If an amount box does not require an entry, leave it blank. Dec. 10 Feedback Check My Work Think about the flow of costs incurred to do a job and the accounts affected by sales to customers. On December 15, review the Time Ticket tables to journalize the entry to record the addition of direct labor to Work in Process for the period December 1 through December 15. If an amount box does not require an entry, leave it blank Dec. 15 Foodback Check My Work Incorrect On December 15, review the Time Ticket tables to journalize the entry to record the addition of factory overhead to Work in Process for the period December 1 through December 15. If an amount box does not require an entry, leave it blank. Dec. 15 Feedback Check My Work Incorrect On December 21, Job 62 is completed. Review the Job Cost Sheets and your journal entries. Journalize the entry to move the associated costs to the finished goods account. If an amount box does not require an entry, leave it blank. Dec 21 Feedback Check My Work Incorrect On December 22, 75 of the 100 sweaters from Job 62 are sold on account for $125 each. Journalize the following transactions: a. The entry to record the sale. b. The entry to record the transfer of costs from Finished Goods to Cost of Goods Sold. If an amount box does not require an entry, leave it blank. Dec. 22 Dec. 22 Feedback Check My Work Chuck My Work On December 31, the last work day of the year for the knitt , vw the Time Ticket table to journal th y to record the addition of direct laber to Work in Pro for the period December 16 through December 31. If an amount badoo rie antry, love it blank. Dec. 31 On December 31, the last work day of the year for the kni , viw the Time Ticket table to journal th y to record the addition of factory overhead to work in Process for the period December 16 through December 31. If an amount box does not require an entry, have blank 88 Check My Work On December 31, journalize the following transaction. Note that one (1). (C) and (d) were paid in cash a. One month's depreciation equipment b. One month's payroll for all mployees c. On montrent of $2,000 d. One month factory of $1,275 Iran amount box does not require an entry, bave it bank. On December 31, prepare the only to dispose of the balance in the factory Overhead account an amount box do not ruire an entry, leave it blank Dec. 31 Final Question What are the balance in the following accoun Work in Pro Find Goods Factory Overhead Cost of Goods Sold Maria Young is the sole stockholder of Purl of Great Price Company (POGP Company), which produces high-end knitted sweaters and sweater vests for sale to retail outlets. The company started in January of the current year, and employs three knitters (each of whom work 40 hours per week) and one office manager/knitting supervisor (this employee works 20 hours per week as office manager, and 20 hours per week as knitting supervisor). All wages are paid in cash at the end of each month. Each knitter has a knitting machine that is used about 2/3 of the knitter's time, the rest of the knitter's time being involved in hand knitting and piecing together the garments. The company also has a packaging machine used to wrap the garments in plastic for shipping, which is operated by the office manager/knitting supervisor approximately 5 hours per week. The knitting machines were purchased on January 1 of the current year, and cost $2,400 each, with an anticipated useful life of 10 years and no salvage value. The packaging machine was purchased on the same date and cost $4,800, with the same anticipated useful life and salvage value. Nov. 30 Trial Balance POGP Company Trial Balance November 30, 2018 Account Title Debit Credit Cash Accounts Receivable Supplies Materials 20,000 1,000 200 5,000 5,404 12,000 825 Work in Process Equipment Accumulated Depreciation Equipment Accounts Payable Common Stock Retained Earnings Dividends Sales Cost of Goods Sold Factory Overhead Wages Expense 150 10,000 12,000 18,096 307,500 255,040 15 13,750 330,490 330,490 Predetermined Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined factory overhead rate, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200 Estimated total Office Manager/Knitting Supervisor wages $36,000 Estimated office utilities $3,000 Estimated factory utilities $4,800 Estimated factory rent $24,000 Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Compute the predetermined factory overhead rate for the current year. $9.60 per DLH Feedback Reg. No. 12255 Job No. 83 Description Qty. Issued Unit Price Amount Yarn type B 700 skeins $5 $3.500 Total issued $3,500 Susan Blake Time Ticket No. 1255 Name: Work Description: Knitting/piecing Dates 12/01-12/ 15 12/16-12/31 Job No. Hours Worked Unit Price Amount 6 2 65 $20 $1,300 83103 20 2,060 Total Cost $3,360 Time Ticket No. 2274 Name: Josh Porter Work Description: Knitting/piecing Dates 12/01-12/ 15 12/16-12/31 Job No. Hours Worked Unit Price Amount 6 2 $20 $1,500 8388 201,760 Total cost $3,260 Time Ticket No. 3923 Name: Mary Jones Work Description: Knitting/piecing Dates Job No. Hours Worked Unit Price Amount 12/01-12/15 62 60 $20 $1,200 12/16-12/31 83 109 202 ,180 Total Cost $3,380 Job Cost Sheets On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materials Requisition table to add the materials to the Job Cost Sheet for Job 83. On December 15, review the Time Ticket tables to add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for Job 62 for the period December 1 through December 15. On December 31, the last work day of the year for the knitters, review Time Ticket tables to add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for Job 83 for the period December 16 through December 31. If there is no amount or an amount is zero, enter "O". If required, round your answers to the nearest cent. Job 62 100 units: Direct Materials $5,000 Sweaters Direct Labor $300 Factory Overhead $104 Total $5,404 Balance Dec. 1 Dec. 15 Total Cost Unit Cost Job 83 200 units: Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Balance Dec. 1 Dec. 10 Dec. 31 Total Cost Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materials Requisition table to journalize the entry to record the addition of the materials to Work in Process. If an amount box does not require an entry, leave it blank. Dec. 10 Feedback Check My Work Think about the flow of costs incurred to do a job and the accounts affected by sales to customers. On December 15, review the Time Ticket tables to journalize the entry to record the addition of direct labor to Work in Process for the period December 1 through December 15. If an amount box does not require an entry, leave it blank Dec. 15 Foodback Check My Work Incorrect On December 15, review the Time Ticket tables to journalize the entry to record the addition of factory overhead to Work in Process for the period December 1 through December 15. If an amount box does not require an entry, leave it blank. Dec. 15 Feedback Check My Work Incorrect On December 21, Job 62 is completed. Review the Job Cost Sheets and your journal entries. Journalize the entry to move the associated costs to the finished goods account. If an amount box does not require an entry, leave it blank. Dec 21 Feedback Check My Work Incorrect On December 22, 75 of the 100 sweaters from Job 62 are sold on account for $125 each. Journalize the following transactions: a. The entry to record the sale. b. The entry to record the transfer of costs from Finished Goods to Cost of Goods Sold. If an amount box does not require an entry, leave it blank. Dec. 22 Dec. 22 Feedback Check My Work Chuck My Work On December 31, the last work day of the year for the knitt , vw the Time Ticket table to journal th y to record the addition of direct laber to Work in Pro for the period December 16 through December 31. If an amount badoo rie antry, love it blank. Dec. 31 On December 31, the last work day of the year for the kni , viw the Time Ticket table to journal th y to record the addition of factory overhead to work in Process for the period December 16 through December 31. If an amount box does not require an entry, have blank 88 Check My Work On December 31, journalize the following transaction. Note that one (1). (C) and (d) were paid in cash a. One month's depreciation equipment b. One month's payroll for all mployees c. On montrent of $2,000 d. One month factory of $1,275 Iran amount box does not require an entry, bave it bank. On December 31, prepare the only to dispose of the balance in the factory Overhead account an amount box do not ruire an entry, leave it blank Dec. 31 Final Question What are the balance in the following accoun Work in Pro Find Goods Factory Overhead Cost of Goods Sold