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 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 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, 20Y8 arcount Title Dehit Credit Nov. 30 Trial Balance POGP Company Trial Balance November 30, 20Y8 Account Title Debit Credit Cash 20,000 Accounts Receivable 1,000 Supplies 200 Materials 5,000 Work in Process 5,404 Equipment 12,000 Accumulated Depreciation-Equipment Accounts Payable 825 150 Common Stock Retained Earnings 10,000 12,000 Dividends 18,096 Sales 307,500 Cost of Goods Sold 255,040 Factory Overhead 15 Wages Expense 13,750 330,490 330,490 Predetermined Factory Overhead Rate Predetermined Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (OH) as the activity base for her predetermined factory over at rather than machine hours Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200 Estimated total Office Manager/Knitting Supervisor wages $42,000 Estimated office utilities Estimated factory utilities Estimated factory rent $24,000 $6.000 $4,800 Activity Base Data Estimated number of DLH for the year 6,250 Estimated number of MH for the year 4,375 Compute the predetermined factory overhead rate for the current year Date: Dec, 10 Materials Requisition Reg. No. 12255 Job No. 83 Description Qty. Issued Unit Price Yarn type 700 skeins $5 Total issued Amount $3,500 $3,500 Time Ticket No. 1255 Name: Susan Blake Work Description: Knitting/piecing Dates Job No. Hours Worked Unit Price 'Amount 62 65 $15 12/01-12/15 $975 83 12/16-12/31 103 15 ht 1,545 Total Cost $2,520 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 $15 $1,125 12/16-12/31 83 88 15 1,320 Total Cost $2,445 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 $15 $900 12/16-12/31 83 109 15 1,635 Total Cost $2,535 Job Cost Sheets 06 Costhet On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the reguistin table to add the materies to the Cost Sheet for lo On December 15, review the Time Ticket tables to add the appropriate amount of direct labor and factory overhead couts to the Job Cost Sheet for Job 6 for me period December through decenter is 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 Cut Shost Portable December 16 through December 31 If there is no amount or an amount is rero, enter 'O' If required, round your answers to the nearest cert Job 62 100 UN Sweaters Direct Materials Direct Laber Factory Overhead Total Balance Dec. 1 55,000 $300 5104 15,404 Dec. 15 3,000 1,920 x 4,920 X Total Cost 5,000 3,300 2,024 X 716 X Unit Cost 10,324 X 0 Job 83 Sweater vests Direct Labor 200 units Direct Materials $0 3,000 X Factory Overhead Total Job Cost 50 50 Balance Dec. 1 $0 O o O X Dec. 10 O X OX Dec. 31 3,000 x 7,380 X Total Cost 3,000 X 4,500 2,880 X Journal On December 10, POGP Company receive an order for 200 meter vest and 283 to the order. Hview the Materias son title to yourse the entry to read the act of the materials to work in Process of an amount or does not require an antara Dec. 10 Workin Beacess Think we wsingurul dat and the corected by sto customer On December 15, review the Time Ticket tests journaire the entry to record the addition of direct isher to work in Process for the period December through December 15. an mount box does not entry, there blank Dec 15 Work in Process 3,00 Wages Payable JO WOM, Correct On December 15, review the Time Ticket tables to journal entry to record the addition of factory overneed to work in process for the perlos December through December 15. If an amount to does not require an entry leave it blank Dec. 15 Work in Process Factory Overhead 1930 x 1.920 X Chapter 16 Mastery (Qula) On December 21, Job 62 is completed, review the Joe Cost Sheets and your mournal entries Joumate the entry to move the cost to the the good. In entry, leave it bank Dec. 21 Accounts Payable x X Cash 3x Chewy Wor Partly comes On December 22, 75 of the 100 sweaters from Job 2 are sold on account for $125 each Joumaline the following transactions a. The entry to record the sale, b. The entry to record the transfer of costs from Finished Cocos to Cest of Goods Sold If an amount box does not require an entry, leave it blank Dec. 22 Sales X 19,24 x 1024 x Dec. 22 X 9.375 X Oh My We Partially comed On December 31, the last work day of the year for the knitters, review the The Tienet tables to journalize the entry to record the addition of director to work in Process for the per December 16th December 31. If an amount box does not require an entry leavet blank Dec 31 Cestovices 7.30 x Accounts Receivable 1,145 X Check Partially correc On December 31, the last work day of the year for the writers, review the Time Ticket tables to journalo them to record the action of factory overhead to work in process for the per December 16th December 31. If an amount box does not require an entry, leave blank Dec 31 Work in Process 4.500X Salaried Payable 41.600 x ChMy Wor Partly corect 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 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 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, 20Y8 arcount Title Dehit Credit Nov. 30 Trial Balance POGP Company Trial Balance November 30, 20Y8 Account Title Debit Credit Cash 20,000 Accounts Receivable 1,000 Supplies 200 Materials 5,000 Work in Process 5,404 Equipment 12,000 Accumulated Depreciation-Equipment Accounts Payable 825 150 Common Stock Retained Earnings 10,000 12,000 Dividends 18,096 Sales 307,500 Cost of Goods Sold 255,040 Factory Overhead 15 Wages Expense 13,750 330,490 330,490 Predetermined Factory Overhead Rate Predetermined Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (OH) as the activity base for her predetermined factory over at rather than machine hours Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200 Estimated total Office Manager/Knitting Supervisor wages $42,000 Estimated office utilities Estimated factory utilities Estimated factory rent $24,000 $6.000 $4,800 Activity Base Data Estimated number of DLH for the year 6,250 Estimated number of MH for the year 4,375 Compute the predetermined factory overhead rate for the current year Date: Dec, 10 Materials Requisition Reg. No. 12255 Job No. 83 Description Qty. Issued Unit Price Yarn type 700 skeins $5 Total issued Amount $3,500 $3,500 Time Ticket No. 1255 Name: Susan Blake Work Description: Knitting/piecing Dates Job No. Hours Worked Unit Price 'Amount 62 65 $15 12/01-12/15 $975 83 12/16-12/31 103 15 ht 1,545 Total Cost $2,520 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 $15 $1,125 12/16-12/31 83 88 15 1,320 Total Cost $2,445 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 $15 $900 12/16-12/31 83 109 15 1,635 Total Cost $2,535 Job Cost Sheets 06 Costhet On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the reguistin table to add the materies to the Cost Sheet for lo On December 15, review the Time Ticket tables to add the appropriate amount of direct labor and factory overhead couts to the Job Cost Sheet for Job 6 for me period December through decenter is 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 Cut Shost Portable December 16 through December 31 If there is no amount or an amount is rero, enter 'O' If required, round your answers to the nearest cert Job 62 100 UN Sweaters Direct Materials Direct Laber Factory Overhead Total Balance Dec. 1 55,000 $300 5104 15,404 Dec. 15 3,000 1,920 x 4,920 X Total Cost 5,000 3,300 2,024 X 716 X Unit Cost 10,324 X 0 Job 83 Sweater vests Direct Labor 200 units Direct Materials $0 3,000 X Factory Overhead Total Job Cost 50 50 Balance Dec. 1 $0 O o O X Dec. 10 O X OX Dec. 31 3,000 x 7,380 X Total Cost 3,000 X 4,500 2,880 X Journal On December 10, POGP Company receive an order for 200 meter vest and 283 to the order. Hview the Materias son title to yourse the entry to read the act of the materials to work in Process of an amount or does not require an antara Dec. 10 Workin Beacess Think we wsingurul dat and the corected by sto customer On December 15, review the Time Ticket tests journaire the entry to record the addition of direct isher to work in Process for the period December through December 15. an mount box does not entry, there blank Dec 15 Work in Process 3,00 Wages Payable JO WOM, Correct On December 15, review the Time Ticket tables to journal entry to record the addition of factory overneed to work in process for the perlos December through December 15. If an amount to does not require an entry leave it blank Dec. 15 Work in Process Factory Overhead 1930 x 1.920 X Chapter 16 Mastery (Qula) On December 21, Job 62 is completed, review the Joe Cost Sheets and your mournal entries Joumate the entry to move the cost to the the good. In entry, leave it bank Dec. 21 Accounts Payable x X Cash 3x Chewy Wor Partly comes On December 22, 75 of the 100 sweaters from Job 2 are sold on account for $125 each Joumaline the following transactions a. The entry to record the sale, b. The entry to record the transfer of costs from Finished Cocos to Cest of Goods Sold If an amount box does not require an entry, leave it blank Dec. 22 Sales X 19,24 x 1024 x Dec. 22 X 9.375 X Oh My We Partially comed On December 31, the last work day of the year for the knitters, review the The Tienet tables to journalize the entry to record the addition of director to work in Process for the per December 16th December 31. If an amount box does not require an entry leavet blank Dec 31 Cestovices 7.30 x Accounts Receivable 1,145 X Check Partially correc On December 31, the last work day of the year for the writers, review the Time Ticket tables to journalo them to record the action of factory overhead to work in process for the per December 16th December 31. If an amount box does not require an entry, leave blank Dec 31 Work in Process 4.500X Salaried Payable 41.600 x ChMy Wor Partly corect