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 knit knitters (each of whom work 40 hours per week) and one office manager/knitting supervisor (this employee works 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 garments in plastic for shipping, which is operated by the office manager/knitting supervisor approximately 5 hours The knitting machines were purchased on January 1 of the current year, and cost $2,400 each, with an anticipated same anticipated useful life and salvage value. Nov. 30 Trial Balance POGP Company Trial Balance November 30, 2018 Account Title Debit Credit Cash 20,000 Accounts Receivable 1,000 Supplies 200 Materials 5,000 5,404 Work in Process Equipment 12,000 Accumulated Depreciation-Equipment 825 150 Accounts Payable Common Stock 10,000 12,000 Retained Earnings 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 Since the company is more reliant on labor than machines, Maria decides to use direct la bor hours (DLH) as the activ Estimated Selected Amounts for the Year $1,200 Estimated depreciation on equipment Estimated total Office Manager/Knitting Supervisor wages $42,000 Estimated office utilities $5,000 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. Materials Requisition Date: Dec. 10 Reg. No. 12255 . Job No. 83 Qty. Issued Unit Price Amount Description Yarn type B 700 skeins $5 $3,500 Total issued $3,500 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 Name: Josh Porter Time Ticket No. 2274 Work Description: Knitting/piecing Dates Job No. 12/01-12/15 62 12/16-12/31 83 Hours Worked Unit Price Amount 75 $20 $1,500 88 20 1,760 Total Cost $3,260 Name: Mary Jones Time Ticket No. 3923 Work Description: Knitting/piecing Dates Job No. 12/01-12/15 / 62 12/16-12/31 83 Hours Worked Unit Price Amount 60 $20 $1,200 109 20 2,180 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 th On December 15, review the Time Ticket tables to add the appropriate amount of direct labor and factory overhead On December 31, the last work day of the year for the knitters, review Time Ticket tables to add the appropriate am 31. 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 Balance Dec. 1 $5,000 $300 $104 $5,404 Dec. 15 0 4,000 Total Cost $ $ $ Unit Cost Job 83 200 units: Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Balance Dec. 1 $0 $0 $0 $0 Dec. 10 Dec. 31 Total Cost $ $ $ $
