Mastery Problem: Job Order Costing Purt of Great Price Company Mana Young is the sole stockholder of Purt of Great Price Company (POGP Company), which produces high end knitted sweaters and sweater vests for sale to retul outlets. The company started in January of the current yeac and employs three knitters (each of whom work 40 hours per week) and one office manager/knitting supervisor (the employee works 20 hours per week as office manager and 20 hours per week as knitting supervisor). Al 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 krutter's time, the rest of the knitter's time being involved in hand knitting and prong 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/knatting supervisory 3 hours per week The knitting machines were purchased on January 1 of the current year, and cost $2,400 each, with an antipated und We of 10 years and no salvage. The dama was purchased on the same date and cost $4,800, with the same antiopted useful and salvage valor Nov. 30 Trial Balance POGP Company Trial Balance November 30, 2018 Account Title Credit Cash Debit 20,000 1,000 Accounts Receivable Supplies Matenals 200 Work in Process 5,000 5,404 12,000 Equipment Accumulated Depreciation Equipment 825 Accounts Payable 150 Common Stock 10,000 Retained Eamings 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 Since the company is more relanton labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined actory mhead ratt, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200 Estimated total Office Manager/Keitting Supervisor wages $30,000 Estimated office utilities $3,000 Estimated factory utties $4,800 Estimated factory rent $24,000 Activity Base Data Estimated number of Du for the year Estimated number of MH for the year 4,375 Compute the predetermined factory overhead rate for the current year, $7.20 per un Feetak Check My Work Review the definitions of tems that are included in tactory overhead for the computation of estimated total factory overhead costs Date: Dec. 10 Materials Requisition Req, No. 12255 Job No. 83 Description Qty. Issued Unit Price Yamn type B 700 skens $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 12/01-12/15 62 65 $15 $975 12/16-12/31 83 103 15 1,545 Total Cost $2,520 Time Ticket No. 2274 Names 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 Names Mary Jones Work Description: Knitting/piecing Dates Job No. Hours Worked Unit Price Amount 62 60 109 12/01-12/15 $15 $900 12/16-12/31 15 1,635 Total Cost $2,535 Job Cost Sheets On December 10, POCP Company receives an order for 200 sweater vests and assons Job 83 to the order Review the Material Requisition table to add the materials to the Job Cout 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 Jub Cost Sheet for Sob s2 for the period December 1 through December 15. 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 overhemd costs to the Job Cunt Sheet for Job 3 for the period December 16 through December 31 If there is no amount or an amount is zero, entero required, round your answers to the nearest cent Job 62 in 100 units: Sweaters Direct Materials Direct Labor $5,000 $300 Balance Dec. 1 Factory Overhead $104 Dec. 15 Total $5,404 Total Cost Unit Cost Job 83 200 units: Sweater vests Direct Materials Direct Labor 50 $0 Total Job Cost Balance Dec. 1 Factory Overhead 50 $0 Dec 10 Dec. 31 Total Cost Check My Work Recall that the factory overhead is applied for this company using dret bor hours Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order Review the Material Requution table to make the entry breathe Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order Review the Materials Region table to your are the entry to read the addition of the materials to Work in Process. If an amount box does not require an entry, leave thank Dec. 10 Feedback Check My Work 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 in Process for the penod Decmber 1 through December 15. amount box does not require an entry, leave it blank Dec. 15 Check My Work incorrect On December 15, review the Time Ticket tables to joumalize the entry to record the addition of factory overhead to Work in Process for the period December though December 15. an amount box does not require an entry, leave it blank On December 15, review the Time Ticket tables to youmakze the entry to record the addition of factory overhead to Work in Process for the per December thwh December 15.11 an amount box does not require an entry, leave it blank Dec. 15 88 Check My Wir Incorrect On December 21, Job 62 in completed. Review the Job Cost Sheets and your soumal entries Joumalize the entry to move the socated costs to the othed amount box does not require an entry, have it blank Dec. 21 Feedback Check My Work Incorrect 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 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 bank Dec 22 ol II II Dec 22 Why Work Incorrect On December 31, the last work day of the year for the butters, review the Time Ticket tables to jourse the entry to record the stone for the period December 16 through December 31. If in amount box does not require an entry, leave it blink Dec. 31 Check My Wor Incorrect On December 31, the last work day of the year for the knitters, review the Time Ticket tables to make the entry to record me addoos of bacted to wore On December 31, the last work day of the year for the knitters, review the Time Ticket tables to youmake the entry to record the ton of factory overhead to work in Process for the period December 16 through December 31. an amount box does not require an entry, leave it bank Dec 31 88 Check My W Incorrect On December 31, joumalize the flowing transactions. Note that expenses (b), (c) and (d) were paid inch a. One month's depreciation on equipment b. One month's payrol for all employees One monthly rent of $2,000 d. One month's factory utties of $1,275 1 an amount box does not require an entry leave it blank Dec. 31 Dill lill Dec. 31 lllll DIIII Fock Check My W Incorrect On December 31, prepare the joumat entry to dispose of the balance in the factory overhead account. f an amount box does not request Dec. 31 88 WOW Incorrect Final Question What are the balances in the following accounts as of December 17 an amount as zero, entero WOW Incorrect Final Question What are the balances in the following accounts as of December 31?montiszer, or "O" Materials Work in Process Finished Goods Factory Overhead Cost of Goods Sold Ole My World Create accounts and post the beginning balances from the New Trace paret The post your nees to get the Dee court Partially correct Mastery Problem: Job Order Costing Purt of Great Price Company Mana Young is the sole stockholder of Purt of Great Price Company (POGP Company), which produces high end knitted sweaters and sweater vests for sale to retul outlets. The company started in January of the current yeac and employs three knitters (each of whom work 40 hours per week) and one office manager/knitting supervisor (the employee works 20 hours per week as office manager and 20 hours per week as knitting supervisor). Al 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 krutter's time, the rest of the knitter's time being involved in hand knitting and prong 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/knatting supervisory 3 hours per week The knitting machines were purchased on January 1 of the current year, and cost $2,400 each, with an antipated und We of 10 years and no salvage. The dama was purchased on the same date and cost $4,800, with the same antiopted useful and salvage valor Nov. 30 Trial Balance POGP Company Trial Balance November 30, 2018 Account Title Credit Cash Debit 20,000 1,000 Accounts Receivable Supplies Matenals 200 Work in Process 5,000 5,404 12,000 Equipment Accumulated Depreciation Equipment 825 Accounts Payable 150 Common Stock 10,000 Retained Eamings 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 Since the company is more relanton labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined actory mhead ratt, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200 Estimated total Office Manager/Keitting Supervisor wages $30,000 Estimated office utilities $3,000 Estimated factory utties $4,800 Estimated factory rent $24,000 Activity Base Data Estimated number of Du for the year Estimated number of MH for the year 4,375 Compute the predetermined factory overhead rate for the current year, $7.20 per un Feetak Check My Work Review the definitions of tems that are included in tactory overhead for the computation of estimated total factory overhead costs Date: Dec. 10 Materials Requisition Req, No. 12255 Job No. 83 Description Qty. Issued Unit Price Yamn type B 700 skens $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 12/01-12/15 62 65 $15 $975 12/16-12/31 83 103 15 1,545 Total Cost $2,520 Time Ticket No. 2274 Names 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 Names Mary Jones Work Description: Knitting/piecing Dates Job No. Hours Worked Unit Price Amount 62 60 109 12/01-12/15 $15 $900 12/16-12/31 15 1,635 Total Cost $2,535 Job Cost Sheets On December 10, POCP Company receives an order for 200 sweater vests and assons Job 83 to the order Review the Material Requisition table to add the materials to the Job Cout 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 Jub Cost Sheet for Sob s2 for the period December 1 through December 15. 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 overhemd costs to the Job Cunt Sheet for Job 3 for the period December 16 through December 31 If there is no amount or an amount is zero, entero required, round your answers to the nearest cent Job 62 in 100 units: Sweaters Direct Materials Direct Labor $5,000 $300 Balance Dec. 1 Factory Overhead $104 Dec. 15 Total $5,404 Total Cost Unit Cost Job 83 200 units: Sweater vests Direct Materials Direct Labor 50 $0 Total Job Cost Balance Dec. 1 Factory Overhead 50 $0 Dec 10 Dec. 31 Total Cost Check My Work Recall that the factory overhead is applied for this company using dret bor hours Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order Review the Material Requution table to make the entry breathe Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order Review the Materials Region table to your are the entry to read the addition of the materials to Work in Process. If an amount box does not require an entry, leave thank Dec. 10 Feedback Check My Work 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 in Process for the penod Decmber 1 through December 15. amount box does not require an entry, leave it blank Dec. 15 Check My Work incorrect On December 15, review the Time Ticket tables to joumalize the entry to record the addition of factory overhead to Work in Process for the period December though December 15. an amount box does not require an entry, leave it blank On December 15, review the Time Ticket tables to youmakze the entry to record the addition of factory overhead to Work in Process for the per December thwh December 15.11 an amount box does not require an entry, leave it blank Dec. 15 88 Check My Wir Incorrect On December 21, Job 62 in completed. Review the Job Cost Sheets and your soumal entries Joumalize the entry to move the socated costs to the othed amount box does not require an entry, have it blank Dec. 21 Feedback Check My Work Incorrect 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 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 bank Dec 22 ol II II Dec 22 Why Work Incorrect On December 31, the last work day of the year for the butters, review the Time Ticket tables to jourse the entry to record the stone for the period December 16 through December 31. If in amount box does not require an entry, leave it blink Dec. 31 Check My Wor Incorrect On December 31, the last work day of the year for the knitters, review the Time Ticket tables to make the entry to record me addoos of bacted to wore On December 31, the last work day of the year for the knitters, review the Time Ticket tables to youmake the entry to record the ton of factory overhead to work in Process for the period December 16 through December 31. an amount box does not require an entry, leave it bank Dec 31 88 Check My W Incorrect On December 31, joumalize the flowing transactions. Note that expenses (b), (c) and (d) were paid inch a. One month's depreciation on equipment b. One month's payrol for all employees One monthly rent of $2,000 d. One month's factory utties of $1,275 1 an amount box does not require an entry leave it blank Dec. 31 Dill lill Dec. 31 lllll DIIII Fock Check My W Incorrect On December 31, prepare the joumat entry to dispose of the balance in the factory overhead account. f an amount box does not request Dec. 31 88 WOW Incorrect Final Question What are the balances in the following accounts as of December 17 an amount as zero, entero WOW Incorrect Final Question What are the balances in the following accounts as of December 31?montiszer, or "O" Materials Work in Process Finished Goods Factory Overhead Cost of Goods Sold Ole My World Create accounts and post the beginning balances from the New Trace paret The post your nees to get the Dee court Partially correct