Mastery Problem: Job Order Costing Purl of Great Price Company 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 cotany also has a packaging machine used to was the garments in plastic for shipping, which is operated by the off ce 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 Credit Debit 20,000 Cash Accounts Receiveble Supplies 1,000 Materials 200 5,000 5,101 12,00D Work in Process Equipment Accumulated Depreciation Fquipment 825 150 10,000 Accounts Payable Common Stock Retained Earnings care Dividends den Sales 12,000 18,096 307,500 255,040 Cost of Goods Sold Factory Overhead 15 Wagas Expense 13,750 330,490 330,490 Predetermined Factory Overhead Rate Since the company is more reliant on labothan machines, Maria decides to use direct labor hours (DUH) as the activity base for her predetermined factory overhead rate, rather than machine hours (MH) Estimated Selected Amounts for the Year Estimated depredator on equipment $1,700 Estimated total Office Manager/Knitting Supervisor wages $36,000 Estimated office utilities $6,000 Estimated factory utilities $4,300 Estimated factory rent $18,000 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. Another amount per DLH X Feedback Check My Work Review the definitions of items that are included in factory overhead for the computation of estimated total factory overhead costs. Materials Requisition Date: Dec. 10 Reg. No. 12255 Job No. 83 Description Qty. Issued Unit Price Amount Yarn type B 600 skeins $5 $3,000 Total issued $3,000 Time Ticket No. 1255 Name: Susan Blake Work Description: Knitting/piecing Dates Job No. Hours Worked Unit Price Amount 12/01-12/15 62 65 $20 $1,300 12/16-12/31 83 103 20 2,060 Total Cost $3,360 Time Ticket No. 2274 Name: Josh Porter Work Description: Knitting/piecing Dates Job No. Hours Worked Unit Price Amount 12/01-12/15 62 75 $20 $1,500 12/16-12/31 83 88 20 1,760 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 20 2,180 Total Cost $3,380 Job Cost Sheets On December 10, FOGP Company receives an order for 200 sweater vests and assigns Job 83 to the ander. Review the Materials Requisit on table to acd the materials to the lob Cos: Sheet for Jab 53. On December 15, review the Time Ticket tables to add the appropriate amount or direct labor and factory overheed costs to the Job Cost Sheet for Job 62 for the period Desember 1 through December 15. On December 31, the last werk day of the year for the knitters, review Time Ticket tables to add the appropriate amount of direct labor and factory overhead posts to the Job Cast Steet for jcb 83 for the period December 16 through December 31. If there is no amount or an amount is zero, enter 'O'. If required, rourd your ansners to the nearest cert. Job 62 100 units: Sweaters Direct Materials Direct Labor Factory Overhead Total Balance Dec. 1 $5,00a S300 $104 $5,404 Dec 15 0 Total Cost $ 5,000 Unit Cost S Job 3 200 units: Sweater vests Total Job Cost Direct Materials $0 Direct Labor $0 Factory Overhead $0 Balance Dec. 1 sa Dec. 10 0 Dec 31 0 Total Cost $ Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns loh 83 to the ander. 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 Work in Process -88 Materials 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, Icave it blank. Dec. 15 Work in Process Wages Payable On December 15, raview the Time Ticket tables to Journalize the entry to record the addition of factory overhead to Work In Process for the period December I through December 15. If an amount box does not require an entry, leave blank. Dec. 15 Work In Process 88 Factory Overhead On December 21, Jcb 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 Finished Goods 88 Work in Process On December 22, 75 of the 100 sweaters from Job 62 are sold an account for $:25 cach. Joumalize the following transactions: a. The entry to record the la b. The entry to record the transfer of costs from Finished Goods to Cost of Goods Sold It an amount hox does not require an entry, leave It blank. Dec 22 Sales 9.375 Accounts Receivable 0227 Dec. 22 Cost of Goods Sold Finished Goods does not require an entry, leave it On December 31, the last wok day of the year for the knitters, review the Time Ticket tables to journalize the entry to record the addition of direct labor to Work in Process for the period December 15 through December 31. If an amount hlank. Dec 31 Wages Payable x Accounts Payable x Frattart Che Who Partialy correct entry, Un December 31, the last work day of the year for the knitters, review the Time Ticket tables to journalize the entry to record the addition of factory overhead to work in Praces for the period December 16 through December 31. If an amount box does not require leave it blank. Dec. 31 Fusik Chuck Wp Work Incorrect On December 31, journalize the following transactions. Note that expenses (b), (c), and (d) were paid in cash. a. One marth's depreciation on equipment b. One mont's payroll for all employees c. Ore month's rent of $1,500 d. One mont's factory utilities of 51,275 If an amount box does not require an entry, leave it blank. Dec 31 Accumulated Depreciation Equipment X lllll 1100 Focus - MWL Paralymui On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If en amount box does not require an entry, leave it blerik. Dec. 31 88 lates Cn B, A4 Incurrent Final Question What are the balances in the following accounts as of December 317 If an amount is zero, enter "'. Materials Work in Process 00000 Finished Goods Factory Overhead Cost of Goods Sold rusta Cook Wy Work Create accounts and post the begrring balances from the Nov. 30 Tria Balance panel. Then post your journal entries to get the Des 31 account balanse