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. Required: 1. Review the data in the Predetermined Factory Overhead Rate panel, and compute the predetermined factory overhead rate for POGP Company 2. On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materials Requisition panel. A. Journalize the entry to record the addition of the materials to Work in Process. * Purl of Great Price Company B. On the Job Cost Sheets panel, add the materials to the Job Cost Sheet for Job 83. 3. On December 15, review the source documents on the Time Tickets panel. A. Journalize the entry to record the addition of direct labor to Work in Process for the period December 1 through December 15.* B. Journalize the entry to record the addition of factory overhead to Work in Process for the period December 1 through December 15.* C. On the Job Cost Sheets panel, add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for Job 6. for the period December 1 through December 15. 4. On December 21, Job 62 is completed. Review the Job Cost Sheets panel and your journal entries. Journalize the entry to move the associated costs to the Finished Goods account.* 5. 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. 6. On December 31, the last work day of the year for the knitters, review the source documents on the Time Tickets panel. A. Journalize the entry to record the addition of direct labor to Work in Process for the period December 16 through December 31.* B. Journalize the entry to record the addition of factory overhead to Work in Process for the period December 16 through December 31.* C. On the Job Cost Sheets panel, add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for Job 8. for the period December 16 through December 31. On December 31 journalize the following transactions* Note that eynenses (R) (C) and (n) were naid in cash C. On the Job Cost Sheets panel, 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. 7. On December 31, journalize the following transactions*. Note that expenses (B), (C), and (D) were paid in cash. A. One month's depreciation on equipment B. One month's payroll for all employees C. One month's rent of $1,000 D. One month's utilities of $1,275 8. On December 31, prepare the journal entry to dispose of the balance in the Factory Overhead account.* 9. What are the balances in the following accounts as of December 31? A. Materials B. Work in Process C. Finished Goods D. Factory Overhead E. Cost of Goods Sold *Refer to the Chart of Accounts for exact wording of account titles. General Ledger ASSETS REVENUE 110 Cash 410 Sales 112 Accounts Receivable 117 Supplies EXPENSES 118 Materials 510 Cost of Goods Sold 119 Work in Process 520 Factory Overhead 120 Finished Goods 525 Wages Expense 125 Equipment 126 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 211 Wages Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Predetermined Factory Overhead Rate Shaded cells have feedback. 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 $1,200.00 Estimated depreciation on equipment Estimated total Office Manager/Knitting Supervisor wages $30,000.00 Estimated office utilities $3,000.00 Estimated factory utilities $4,800.00 $12,000.00 Estimated factory rent Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Calculate the predetermined factory overhead rate for the current year. If required, round your answers to the nearest cent. $6.60 per DLH Points: 1/1 Materials Requisition Materials Requisition Date: Dec. 10 Req. No. 12255 Job No. 83 Description Qty. Issued Hourly Rate Cost Yarn type B 600 skeins $5.00 $3,000 Total issued $3,000 Time Tickets Time Ticket No. 1255 Employee Name: Susan Blake Work Description: Knitting/piecing Dates Job No. Hours Worked Hourly Rate Cost 12/01-12/15 65 $20.00 $1,300.00 62 83 12/16-12/31 103 $20.00 $2,060.00 Total Cost $3,360.00 Time Ticket No. 2274 Employee Name: Josh Porter Work Description: Knitting/piecing Dates Job No. Hours Worked Hourly Rate Cost 12/01-12/15 62 75 $20.00 $1,500.00 12/16-12/31 83 88 $20.00 $1,760.00 Total Cost $3,260.00 Time Ticket No. 3923 Employee Name: Mary Jones Work Description: Knitting/piecing Dates Job No. Hours Worked Hourly Rate Cost 12/01-12/15 62 60 $20.00 $1,200.00 12/16-12/31 109 $20.00 $2,180.00 Total Cost $3,380.00 Job Cost Sheets Shaded cells have feedback. Add the amounts in requirements 2(B), 3(C), and 6(C) to the appropriate areas of the following JOD CO nd 6(C) to the appropriate areas of the following job cost sheets. If there is no amount or an amount is zero, enter "0". If required, round your answers to the nearest cent. Job 62 100 units: Sweaters Direct Materials Direct Labor Factory Overhead Total Job Cost Balance Dec. 1 $5,000 $300 $104 $5,404 Dec. 15 ov 1,300 429 X 6,040 X Total Cost $5,000 $1,600 X $533 $11,444 Unit Cost $114.00 X Points: 279 Feedback Job 83 200 units: Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Balance Dec. 1 $0 $0 $0 $0. Dec. 10 3,000 5,404 X Dec. 31 ov Total Cost $3,000 Journalize the entries in requirements 2 - 8. Refer to the Chart of Accounts for exact wording of account titles. All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. JOURNAL Score: 2/287 ACCOUNTING EQU. DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES DATE Dec. 10 Points: What are the balances in the following accounts as of December 31? If an amount is zero, enter "O". Materials | Work in Process A | Finished Goods A | Factory Overhead A AI Cost of Goods Sold Points: 0/5 Feedback Check My Work Create T accounts and post the beginning balances from the Nov. 30 Trial Balance panel. Then post your journal entries to get the Dec. 31 account balances. 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. Required: 1. Review the data in the Predetermined Factory Overhead Rate panel, and compute the predetermined factory overhead rate for POGP Company 2. On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materials Requisition panel. A. Journalize the entry to record the addition of the materials to Work in Process. * Purl of Great Price Company B. On the Job Cost Sheets panel, add the materials to the Job Cost Sheet for Job 83. 3. On December 15, review the source documents on the Time Tickets panel. A. Journalize the entry to record the addition of direct labor to Work in Process for the period December 1 through December 15.* B. Journalize the entry to record the addition of factory overhead to Work in Process for the period December 1 through December 15.* C. On the Job Cost Sheets panel, add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for Job 6. for the period December 1 through December 15. 4. On December 21, Job 62 is completed. Review the Job Cost Sheets panel and your journal entries. Journalize the entry to move the associated costs to the Finished Goods account.* 5. 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. 6. On December 31, the last work day of the year for the knitters, review the source documents on the Time Tickets panel. A. Journalize the entry to record the addition of direct labor to Work in Process for the period December 16 through December 31.* B. Journalize the entry to record the addition of factory overhead to Work in Process for the period December 16 through December 31.* C. On the Job Cost Sheets panel, add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for Job 8. for the period December 16 through December 31. On December 31 journalize the following transactions* Note that eynenses (R) (C) and (n) were naid in cash C. On the Job Cost Sheets panel, 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. 7. On December 31, journalize the following transactions*. Note that expenses (B), (C), and (D) were paid in cash. A. One month's depreciation on equipment B. One month's payroll for all employees C. One month's rent of $1,000 D. One month's utilities of $1,275 8. On December 31, prepare the journal entry to dispose of the balance in the Factory Overhead account.* 9. What are the balances in the following accounts as of December 31? A. Materials B. Work in Process C. Finished Goods D. Factory Overhead E. Cost of Goods Sold *Refer to the Chart of Accounts for exact wording of account titles. General Ledger ASSETS REVENUE 110 Cash 410 Sales 112 Accounts Receivable 117 Supplies EXPENSES 118 Materials 510 Cost of Goods Sold 119 Work in Process 520 Factory Overhead 120 Finished Goods 525 Wages Expense 125 Equipment 126 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 211 Wages Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Predetermined Factory Overhead Rate Shaded cells have feedback. 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 $1,200.00 Estimated depreciation on equipment Estimated total Office Manager/Knitting Supervisor wages $30,000.00 Estimated office utilities $3,000.00 Estimated factory utilities $4,800.00 $12,000.00 Estimated factory rent Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Calculate the predetermined factory overhead rate for the current year. If required, round your answers to the nearest cent. $6.60 per DLH Points: 1/1 Materials Requisition Materials Requisition Date: Dec. 10 Req. No. 12255 Job No. 83 Description Qty. Issued Hourly Rate Cost Yarn type B 600 skeins $5.00 $3,000 Total issued $3,000 Time Tickets Time Ticket No. 1255 Employee Name: Susan Blake Work Description: Knitting/piecing Dates Job No. Hours Worked Hourly Rate Cost 12/01-12/15 65 $20.00 $1,300.00 62 83 12/16-12/31 103 $20.00 $2,060.00 Total Cost $3,360.00 Time Ticket No. 2274 Employee Name: Josh Porter Work Description: Knitting/piecing Dates Job No. Hours Worked Hourly Rate Cost 12/01-12/15 62 75 $20.00 $1,500.00 12/16-12/31 83 88 $20.00 $1,760.00 Total Cost $3,260.00 Time Ticket No. 3923 Employee Name: Mary Jones Work Description: Knitting/piecing Dates Job No. Hours Worked Hourly Rate Cost 12/01-12/15 62 60 $20.00 $1,200.00 12/16-12/31 109 $20.00 $2,180.00 Total Cost $3,380.00 Job Cost Sheets Shaded cells have feedback. Add the amounts in requirements 2(B), 3(C), and 6(C) to the appropriate areas of the following JOD CO nd 6(C) to the appropriate areas of the following job cost sheets. If there is no amount or an amount is zero, enter "0". If required, round your answers to the nearest cent. Job 62 100 units: Sweaters Direct Materials Direct Labor Factory Overhead Total Job Cost Balance Dec. 1 $5,000 $300 $104 $5,404 Dec. 15 ov 1,300 429 X 6,040 X Total Cost $5,000 $1,600 X $533 $11,444 Unit Cost $114.00 X Points: 279 Feedback Job 83 200 units: Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Balance Dec. 1 $0 $0 $0 $0. Dec. 10 3,000 5,404 X Dec. 31 ov Total Cost $3,000 Journalize the entries in requirements 2 - 8. Refer to the Chart of Accounts for exact wording of account titles. All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. JOURNAL Score: 2/287 ACCOUNTING EQU. DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES DATE Dec. 10 Points: What are the balances in the following accounts as of December 31? If an amount is zero, enter "O". Materials | Work in Process A | Finished Goods A | Factory Overhead A AI Cost of Goods Sold Points: 0/5 Feedback Check My Work Create T accounts and post the beginning balances from the Nov. 30 Trial Balance panel. Then post your journal entries to get the Dec. 31 account balances