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Mastery Problem: Job Order Costing Purl of Great Price Company Mana Young is the sole stockholder of Purl of Great Price Company (POGP Company, which

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Mastery Problem: Job Order Costing Purl of Great Price Company Mana Young is the sole stockholder of Purl of Great Price Company (POGP Company, which produces high-end kitted 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 supervisar). Al wages are paid in cash at the end of each month Eschnitte sitting machine that is used about 2/3 of the kriters time, the rest of the car's time being involved in hand knitting and piecing together the garments. The company hos 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 cout 2.400 each with an anticipated refire or 10 years and no salope value. The packaging machine was purchased on the same date and cost 14,000, with the same anticipated the and salvage value Nov. 30 Taalance POGP Company Trial Balance November 30, 2018 Account Title Cash Accounts Receivable Credit Debit 20,000 1,000 200 5,000 Supplies Materials Work in Process 5,404 Equipment 12.000 POGP Company Trial Balance November 30, 2018 Account Title Debit Credit Cash 20,000 Accounts Receivable 1,000 Supplies 200 Materials 5,000 Work in Process 5,404 12,000 Equipment Accumulated Depreciation-Equipment Accounts Payable 825 150 > Common Stock 10,000 Retained Earnings 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 the machines, Maria decides to use are two hours (CH) the cytose for her remind factory overes ute, other than machine hours (MH) Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200 Estimated to a Oce Manager/Knitting Supervisor wages $30,000 Estimated office utilities $5,000 Estimated factory utilities Estimated factory rent $12,000 54.800 Activity Base Data Estimated number of DLH for the year 6.250 Estimated number of Mr 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 Amount Yamn type B 600 skins $5 33.000 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 88 83 20 1,760 12/16-12/31 Total Cost $3,260 109 Time Ticket No. 3923 Name: Mary Jones Work Description Knitting/piecing Dates Job No. Hours Worked Unit Price Amount 12/01-12/15 62 60 520 $1,200 12/16-12/31 83 20 2,150 Total Cost $3,300 Job Cost Sheets On December 10, POGP Company receives an enter for 200 sweater vests and assigns Jon 03 to the order Rew the Maternitation table to add the materials to the Jon Cart Sheet for Job 3 On December 15, review the Time Ticket tables to add the appropriate amount of direct labor and factory owerhead costs to the 206 Cort Sheet for Job oz for the period December wrough December 15 On December 31, the last work day or the year for the Anitters, review Time Ticket tables to add the aporopriate amount of Grect labor and factory overhead costs to the Job Cout Sheet for 3o 83 for the period December 16 through December 31 If there is no amount o an amount is zero, entor to Irequired, round your answers to the nearest cent Job 62 100 units Sweater Direct Materials Direct Labor Factory Overhead Total Balance Dec, 2 55.000 $300 3104 $5,404 Dec 15 Total Cost Unit Cost If there is no amount or an amount is zero, enter to. If required, round your answers to the nearest cont. Job 62 100 units sweaters Direct Materials Direct Labor Factory Overhead Total Balance Dec. 1 $5,000 $300 $104 $5,400 Dec. 15 Total Cost Unit Cost Job 83 200 units Sweater vests Direct Materials Direct Labor 50 $0 Total Job Cost Factory Overhead 30 $D Balance Dec. 1 Dec. 10 Dec. 31 Total Cost Journal 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 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 Journal On December 10, POGP Company receives an order for 200 sweater vests and ass to the order Review the Materials Requisition table to Journaline 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 98 On December 15, review the Time Ticket tables to journalce the entry to record the addition of direct labor to Work in Process for the period December I through December 15. If an amount box does not require an entry leave it bank 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 15.11 amount to does not require an entry leave it bank Dec. 15 88 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 10 On December 21, Job 62 is completed. Review the Job Cost Sheets and your journal entries. Journal the entry to move the associated costs to the finished goods account 1 an amount box des not require an entry leave it bank Dec 21 88 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 . The entry to record the transfer of costs from Finished Goods to cost of Goods Sold Iran amount box does not require an entry, leave it blank. Dec 22 Dec. 22 II II 900 on II II On 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 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 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 knittees, review the Time Ticket tables to journalice the entry to record the addition of factory overhead to Work in Process for the period December 16 through December 31. Ir an amount box does not require an entry, leave it blank Dec 31 88 On December 31, Journalize the following transactions. Note that expenses (b), (c), and (a) were paid in cash. 3. 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 factory utilities of $1,275 af an amount box does not require an entry, leave it blank Dec 31 on December 31, journalierown transactions ODNs were paid in case a. One month depreciation on equipment b. One month's payroll for all employees c. One month's rent of $1,000 d. One month's factory utilities of $1,225 If an amount box does not require an entry, leave it bank Dec. 31 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 blank Dec 31 188 Final Question What are the balances in the following accounts as of December 317 If an amount is zero, enter"0" Materials If an amount box does not require an entry, leave it blank Dec. 31 Ill II 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 blank Dec. 31 Final Question What are the balances in the following accounts as of December 31? If an amount is zero, enter *o. Materials Work in Process Finished Goods Factory Overhead Cost of Goods Sold

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