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 plecing 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. Calculator Nov. 30 Trial Balance POGP Company Trial Balance November 30, 2048 Account Title Credit Cash Debit 20,000 1,000 Accounts Receivable Supplies 200 Materials 5,000 Work in Process 5,404 12,000 Equipment Accumulated Depreciation-Equipment Accounts Payable Common Stock Retained Earnings 825 150 10,000 12,000 Dividends 18,096 Sales 307,500 255,040 Cost of Goods Sold Factory Overhead 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 labor Estimated depreciation L Estimated Selected Amounts for the Year $1,200 Estimated total office Manager/Knitting Supervisor wages $30.000 Estimated office utilities $3,000 Estimated factory utilities $4,800 e rvisor wages $30. Estimated total Office Manager/Knitting Supervisor wages $30,000 Estimated office utilities $3,000 Estimated factory utilities $4,800 Estimated factory rent $18,000 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. $6.24 per DLH Feedback Check My Work Review the definitions of items that are included in factory overhead for the computation of estima Materials Requisition Date: Dec. 10 Reg. No. 12255 Job No. 83 Description Qty. Issued Unit Price Amount Yarn type B 700 skeins $3,500 Total issued $3,500 $5 Time Ticket No. 1255 Name: Susan Blake Work Description: Knitting/blecing Dates Job No. Hours Worked Unit Price Amount 12/01-12/15 $15 $975 12/16-12/31 103 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 75 $15 $1,125 12/16-12/31 15 1,320 Total Cost $2,445 88 $90 Time Ticket No. 3923 Name: Mary Jones Work Description: Knitting/piecing Dates Job No. Hours Worked Unit Price Amount 12/01-12/15 $15 $900 12/16-12/31 109 1,635 Total Cost $2,535 Job Cost Sheets On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the On December 15, review the Time Ticket tables to add the appropriate amount of direct labor and fa On December 31, the last work day of the year for the knitters, review Time Ticket tables to add the If there is no amount or an amount is zero, enter"0". If required, round your answers to the neares Job 62 100 units: Direct Materials $5,000 Total Sweaters Direct Labor $300 3,000 Balance Dec. 1 Factory Overhead $104 1,824 $ 1,928 Dec. 15 $5,404 4,824 10,228 102.28 Total Cost 5,000 $ 3,300 $ $ Unit Cost Direct Materials Total Job Cost $0 Balance Dec. 1 Dec. 10 Dec. 31 3,500 Direct Labor $0 10 4,500 $ 4,500 Factory Overhead $0 0 2,736 $ 2,736 0 3,500 3,500 7,236 10,736 Total Cost $ $ Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review t does not require an entry, leave it blank. Dec. 10 Work in Process 3,500 Materials O 3.500 Think about the flow of costs incurred to do a job and the accounts affected by sales to customers. On December 15, review the Time Ticket tables to journalize the entry to record the addition of direct labor to Work i Dec. 15 Work in Process ects Work in Process v 3,000 3,000 v Wages Payable 3,000 Corre Wec On December 15, review the Time Ticket tables to journalize the entry to record the addition of factory overhead to V Dec. 15 Work in Process 1.824 YouTube PeopleNet Fleet Ma.. Tenstreet Home Applicant In. Infiniti Peop Calculator 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. Dec. 22 Accounts Receivable 9,375 9,375 Dec. 22 Cost of Goods Sold Finished Goods 7,671 On December 31, the last work day of the year for the knitters, review the Time Ticket tables to jour does not require an entry, leave it blank. Dec 31 Work in Process 4,500 Wages Payable 4.500 On December 31, the last work day of the year for the knitters, review the Time Ticket tables to jour box does not require an entry, leave it blank. Dec. 31 Work in Process 2,736 Factory Overhead 2.736 On December 31, journalize the following transactions. Note that expenses (b), (c), and (d) were pa 3. One month's depreciation on equipment b. One month's payroll for all employees c. One month's rent of $1.500 d. One month's factory utilities of $1,275 If an amount box does not require an entry, leave it blank. Dec 31 Factory Calculator a. One month's depreciation on equipment b. One month's payroll for all employees c. One month's rent of $1,500 d. One month's factory utilities of $1,275 If an amount box does not require an entry, leave it blank. Dec. 31 Factory Overhead Accumulated Depreciation-Equipment Wages Payable FILE 7,500 Cash Factory Overhead On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an Dec 31 Factory Overhead y Cash X 1.275 x Feedback Check My Work Partially correct Final Question What are the balan following accounts as of December 31? If an amount is zero, enter"0" $ 1,500 Materials Work in Process $ 10,340 X Finished Goods 2.491 X 740 X Factory Overhead Dec. 31 Factory Overhead Accumulated Depreciation-Equipment Wages Payable 7,500 00111 Factory Overhead On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an a Dec. 31 Factory Overhead X 1,275 x Cash X 1,275 x Check My Work Partially correct PETERS Final Question What are the balances in the following accounts as of December 31? If an amount is zero, enter"0". Materials $ 1,500 Work in Process $ 10,340 X Finished Goods $ 2,491 x Factory Overhead 740 Cost of Goods Sold 7,583 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 plecing 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. Calculator Nov. 30 Trial Balance POGP Company Trial Balance November 30, 2048 Account Title Credit Cash Debit 20,000 1,000 Accounts Receivable Supplies 200 Materials 5,000 Work in Process 5,404 12,000 Equipment Accumulated Depreciation-Equipment Accounts Payable Common Stock Retained Earnings 825 150 10,000 12,000 Dividends 18,096 Sales 307,500 255,040 Cost of Goods Sold Factory Overhead 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 labor Estimated depreciation L Estimated Selected Amounts for the Year $1,200 Estimated total office Manager/Knitting Supervisor wages $30.000 Estimated office utilities $3,000 Estimated factory utilities $4,800 e rvisor wages $30. Estimated total Office Manager/Knitting Supervisor wages $30,000 Estimated office utilities $3,000 Estimated factory utilities $4,800 Estimated factory rent $18,000 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. $6.24 per DLH Feedback Check My Work Review the definitions of items that are included in factory overhead for the computation of estima Materials Requisition Date: Dec. 10 Reg. No. 12255 Job No. 83 Description Qty. Issued Unit Price Amount Yarn type B 700 skeins $3,500 Total issued $3,500 $5 Time Ticket No. 1255 Name: Susan Blake Work Description: Knitting/blecing Dates Job No. Hours Worked Unit Price Amount 12/01-12/15 $15 $975 12/16-12/31 103 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 75 $15 $1,125 12/16-12/31 15 1,320 Total Cost $2,445 88 $90 Time Ticket No. 3923 Name: Mary Jones Work Description: Knitting/piecing Dates Job No. Hours Worked Unit Price Amount 12/01-12/15 $15 $900 12/16-12/31 109 1,635 Total Cost $2,535 Job Cost Sheets On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the On December 15, review the Time Ticket tables to add the appropriate amount of direct labor and fa On December 31, the last work day of the year for the knitters, review Time Ticket tables to add the If there is no amount or an amount is zero, enter"0". If required, round your answers to the neares Job 62 100 units: Direct Materials $5,000 Total Sweaters Direct Labor $300 3,000 Balance Dec. 1 Factory Overhead $104 1,824 $ 1,928 Dec. 15 $5,404 4,824 10,228 102.28 Total Cost 5,000 $ 3,300 $ $ Unit Cost Direct Materials Total Job Cost $0 Balance Dec. 1 Dec. 10 Dec. 31 3,500 Direct Labor $0 10 4,500 $ 4,500 Factory Overhead $0 0 2,736 $ 2,736 0 3,500 3,500 7,236 10,736 Total Cost $ $ Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review t does not require an entry, leave it blank. Dec. 10 Work in Process 3,500 Materials O 3.500 Think about the flow of costs incurred to do a job and the accounts affected by sales to customers. On December 15, review the Time Ticket tables to journalize the entry to record the addition of direct labor to Work i Dec. 15 Work in Process ects Work in Process v 3,000 3,000 v Wages Payable 3,000 Corre Wec On December 15, review the Time Ticket tables to journalize the entry to record the addition of factory overhead to V Dec. 15 Work in Process 1.824 YouTube PeopleNet Fleet Ma.. Tenstreet Home Applicant In. Infiniti Peop Calculator 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. Dec. 22 Accounts Receivable 9,375 9,375 Dec. 22 Cost of Goods Sold Finished Goods 7,671 On December 31, the last work day of the year for the knitters, review the Time Ticket tables to jour does not require an entry, leave it blank. Dec 31 Work in Process 4,500 Wages Payable 4.500 On December 31, the last work day of the year for the knitters, review the Time Ticket tables to jour box does not require an entry, leave it blank. Dec. 31 Work in Process 2,736 Factory Overhead 2.736 On December 31, journalize the following transactions. Note that expenses (b), (c), and (d) were pa 3. One month's depreciation on equipment b. One month's payroll for all employees c. One month's rent of $1.500 d. One month's factory utilities of $1,275 If an amount box does not require an entry, leave it blank. Dec 31 Factory Calculator a. One month's depreciation on equipment b. One month's payroll for all employees c. One month's rent of $1,500 d. One month's factory utilities of $1,275 If an amount box does not require an entry, leave it blank. Dec. 31 Factory Overhead Accumulated Depreciation-Equipment Wages Payable FILE 7,500 Cash Factory Overhead On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an Dec 31 Factory Overhead y Cash X 1.275 x Feedback Check My Work Partially correct Final Question What are the balan following accounts as of December 31? If an amount is zero, enter"0" $ 1,500 Materials Work in Process $ 10,340 X Finished Goods 2.491 X 740 X Factory Overhead Dec. 31 Factory Overhead Accumulated Depreciation-Equipment Wages Payable 7,500 00111 Factory Overhead On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an a Dec. 31 Factory Overhead X 1,275 x Cash X 1,275 x Check My Work Partially correct PETERS Final Question What are the balances in the following accounts as of December 31? If an amount is zero, enter"0". Materials $ 1,500 Work in Process $ 10,340 X Finished Goods $ 2,491 x Factory Overhead 740 Cost of Goods Sold 7,583