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 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 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). Compute the predetermined factory overhead rate for the current year. \begin{tabular}{ccccc} Time Ticket & No. 3923 & Name: & \multicolumn{2}{l}{ Mary Jones } \\ \hline Work Description: & Knitting/piecing & & & \\ \hline Dates & Job No. & Hours Worked & Unit Price & Amount \\ \hline 12/0112/15 & 62 & 60 & $20 & $1,200 \\ 12/1612/31 & 83 & 109 & 20 & 2,180 \\ \hline \end{tabular} 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 tabies to add the appropriate amount of direct labor and foctory overhead costs to the Job Cost Sheet for 30683 for the period December 16 through December 31. If there is no amount or an amount is zero, enter " 0 ". If required, round your answers to the nearest cent. On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materiais Requisition table to fournalize 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 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 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 biank. Dec. 15 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 On December 22,75 of the 100 swesters from Job 62 are sold on account for $125 each, Joumalize 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. On December 31, the last work day of the vear for the knitters, review the Time Ticket tabies to journalize the entry to record the addition of direct labor to Work in Process for the period December 16 through December 31. If an amount box does not require an entry, leave it blank. Dec. 31 On December 31, the last work day of the year for the knitters, review the Time Ticket tables to journalze the entry 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, leave it blank. Dec. 31 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 $2,000 d. One month's factory utilities of $1,275 If an amount box does not require an entry, leave it blank. On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an amount box does not require an entry, leave it biank. Dec. 31 What are the balances in the following accounts as of December 31 ? If an amount is zero, enter " 0