Mastery Problem: Job Order CostingPurl of Great Price CompanyMaria 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 knitters time, the rest of the knitters 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.Question Content AreaNov. $30$ Trial BalancePOGP CompanyTrial BalanceNovember $30,20$Y$8$Account TitleDebitCreditCash$20,000$Accounts Receivable$1,000$Supplies$200$Materials$5,000$Work in Process$5,404$Equipment$12,000$Accumulated Depreciation$-$Equipment$825$Accounts Payable$150$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$13,750330,490330,490$Predetermined Factory Overhead RateSince 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$).$Estimated Selected Amounts for the YearEstimated depreciation on equipment$$1,200$Estimated total Office Manager$/$Knitting Supervisor wages$$42,000$Estimated office utilities$$5,000$Estimated factory utilities$$4,800$Estimated factory rent$$12,000$Activity Base DataEstimated number of DLH for the year$6,250$Estimated number of MH for the year$4,375$Compute the predetermined factory overhead rate for the current year.Question Content AreaMaterials RequisitionDate: Dec. $10$Req. No$.12255$Job No$.83$DescriptionQty. IssuedUnit PriceAmountYarn type B$700$ skeins$$5$$$3,500$Total issued$$3,500$Time TicketNo. $1255$Name:Susan BlakeWork Description:Knitting$/$piecingDatesJob No$.$Hours WorkedUnit PriceAmount$12/01-12/156265$ $$15$ $$97512/16-12/3183103151,545$Total Cost$$2,520$Time TicketNo. $2274$Name:Josh PorterWork Description:Knitting$/$piecingDatesJob No$.$Hours WorkedUnit PriceAmount$12/01-12/156275$$$15$$$1,12512/16-12/318388151,320$Total Cost$$2,445$Time TicketNo. $3923$Name:Mary JonesWork Description:Knitting$/$piecingDatesJob No$.$Hours WorkedUnit PriceAmount$12/01-12/156260$ $$15$$$90012/16-12/3183109151,635$Total Cost$$2,535$Job Cost SheetsOn December $10,$ POGP Company receives an order for $200$ sweater vests and assigns Job $83$ to the order. Review the Materials Requisition table to add the materials to the Job Cost Sheet for Job $83.$On December $15,$ review the Time Ticket tables to add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for Job $62$ for the period December $1$ through December $15.$On December $31,$ the last work day of the year for the knitters, review Time Ticket tables to add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for Job $83$ for the period December $16$ through December $31.$If there is no amount or an amount is zero, enter $"0".$ If required, round your answers to the nearest cent.Job $62100$ units:SweatersDirect MaterialsDirect LaborFactory OverheadTotalBalance Dec. $1$$$5,000$$$300$$$104$$$5,404$Dec. $15$fill in the blank $51$a$539$fc$0$fd$603$d$\_1$fill in the blank $51$a$539$fc$0$fd$603$d$\_2$fill in the blank $51$a$539$fc$0$fd$603$d$\_3$fill in the blank $51$a$539$fc$0$fd$603$d$\_4$Total Cost$fill in the blank $51$a$539$fc$0$fd$603$d$\_5$$fill in the blank $51$a$539$fc$0$fd$603$d$\_6$$fill in the blank $51$a$539$fc$0$fd$603$d$\_7$$fill in the blank $51$a$539$fc$0$fd$603$d$\_8$Unit Cost$fill in the blank $51$a$539$fc$0$fd$603$d$\_9$Job $83200$ units:Sweater vestsDirect MaterialsDirect LaborFactory OverheadTotal Job CostBalance Dec. $1$$$0$$$0$$$0$$$0$Dec. $10$fill in the blank $51$a$539$fc$0$fd$603$d$\_10$fill in the blank $51$a$539$fc$0$fd$603$d$\_11$fill in the blank $51$a$539$fc$0$fd$603$d$\_12$fill in the blank $51$a$539$fc$0$fd$603$d$\_13$Dec. $31$fill in the blank $51$a$539$fc$0$fd$603$d$\_14$fill in the blank $51$a$539$fc$0$fd$603$d$\_15$fill in the blank $51$a$539$fc$0$fd$603$d$\_16$fill in the blank $51$a$539$fc$0$fd$603$d$\_17$Total Cost$fill in the blank $51$a$539$fc$0$fd$603$d$\_18$$fill in the blank $51$a$539$fc$0$fd$603$d$\_19$$fill in the blank $51$a$539$fc$0$fd$603$d$\_20$$fill in the blank $51$a$539$fc$0$fd$603$d$\_21$Question Content AreaJournalOn December $10,$ POGP Company receives an order for $200$ sweater vests and assigns Job $83$ to the order. Review the Materials Requisition table to journalize the entry to record the addition of the materials to Work in Process. If an amount box does not require an entry, leave it blank.Dec. $10$Question Content AreaOn December $15,$ review the Time Ticket tables to journalize the entry to record the addition of direct labor to Work in Process for the period December $1$ through December $15.$ If an amount box does not require an entry, leave it blank.Dec. $15$Question Content AreaOn December $15,$ review the Time Ticket tables to journalize the entry to record the addition of factory overhead to Work in Process for the period December $1$ through December $15.$ If an amount box does not require an entry, leave it blank.Dec. $15$Question Content AreaOn December $21,$ Job $62$ is completed. Review the Job Cost Sheets and your journal entries. Journalize the entry to move the associated costs to the finished goods account. If an amount box does not require an entry, leave it blank.Dec. $21$Question Content AreaOn December $22,75$ of the $100$ sweaters from Job $62$ are sold on account for $$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 blank.Dec. $22$Dec. $22$Question Content AreaOn 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. $31$Question Content AreaOn 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 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. $31$Question Content AreaOn December $31,$ journalize the following transactions. Note that expenses $($b$),($c$),$ and $($d$)$ were paid in cash.a$.$ One months depreciation on equipmentb. One months payroll for all employeesc. One months rent of $$1,000$d$.$ One months factory utilities of $$1,275$If an amount box does not require an entry, leave it blank.Dec. $31$Question Content AreaOn 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. $31$Question Content AreaFinal QuestionWhat are the balances in the following accounts as of December $31?$ If an amount is zero, enter $"0".$Materials$fill in the blank a$0$c$14$b$02105$df$93\_1$Work in Process$fill in the blank a$0$c$14$b$02105$df$93\_2$Finished Goods$fill in the blank a$0$c$14$b$02105$df$93\_3$Factory Overhead$fill in the blank a$0$c$14$b$02105$df$93\_4$Cost of Goods Sold$fill in the blank a$0$c$14$b$02105$df$93\_5$