Mastery Problems Job Order Costing Purl of Great Price Company Maria Young is the sole stockholder of Parlof Great Price Company (POGP Company, which produces high ended water and water vests for sale to real outlets. The company started in January of the current yet and employs the litters each of whom work hours per weed one office manager/eing supervisor this more 20 hours per weeks office manager and 20 hours per week asking wervisor). Al was weed cash at the end of each month Encher has a knitting machine that is used about 2/3 of the time, the rest of the litter's time being involved i handing and piecing her the garments. The company also has a packaging machine used to wrap the garments in plastic for shing, which is operated by the office managering vir roomately 5 hours per The knitting machines were purchased on January of the current yea and cost $2.400 each with an ide of 10 years and more. The package was purchased on the same date and cost 54,800, with the same anticipated and salvage value Nov. 30 Trial Balance POGP Company Trial Balance November 30, 2018 Account Title Credit Debit 20.000 1.000 200 Accounts Receivable Supplies 5.000 18.00 Work in Process 5,404 Equipment 12,000 Accumulated Depreciation-ipment 825 Accounts Payable 150 Common Stock 10,000 Retained tas 12,000 Dividends Sales 307,500 Cost of Goods Sold 255.040 Factory Overhead 15 Wapes Expense 13,750 330,490 330,490 Predetermined Factory Overhead Rate Since the company is more reliant on labor the machines, Maria decides to use direct labor hours (as the activity base for machine hours Estimated Selected Amounts for the Year Estimated depreciation onment $1,200 Estimated total otce Manager in Supervisor wages $30,000 Estimated lice utilities $4,000 Estimated factory $4,800 Estimated factory rent $12,000 Activity Base Data Estimated number of for the year mated number of for the year 3.500 Compute the predetermined factory overhead rate for the current you Date: Dec 10 Materials Requisition Best 12255 Description Qty. Issued Unit Price $3.500 Time Ticket No. 1255 Name: Susan Blake Work Description: Knitting/piecing Dates Job Ne Hours Worked Unit Price Amount 12/01-12/15 62 65 $15 $975 12/16-12/31 103 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 Name: Mary Jones Work Description: Knitting/piecing Dates Job No. Hours Worked Unit Price Amount 12/01-12/15 62 60 $15 $900 12/16-12/31 83 109 15 1.635 Total Cost $2.535 ODONT On December 10, POCP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Revist the Mateo Renzion table to add the materials to the Job Cos Sheet for Job 3 On December 15, review the Time Tkke 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 Tume Ticket tables to add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for lob 83 for the period December 16 through December 31 If there is no amount or an amount is zero, entero. If required, round your answers to the nearest cent. Job 62 100 hits Sweaters Direct Materials Direct Labor Factory Overhead Total Balance Dec. 1 55,000 $300 5104 $5,404 Dec. 15 Total Cost Unit Cost Job 83 200 units Direct Materials 30 Sweater vests Direct Labor 10 Factory Overhead Total Job Cost 30 Balance Dec. 1 $0 Dec, 10 Dec 31 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 blank Dec. 10 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 period December 1 through December 15. If an amount box does not require an entry, leave it blank. Dec. 15 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 1 through December 15. If an amount box does not require an entry, leave it blank. Dec. 15 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 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. 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 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 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 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 Un 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 If an amount box does not require an entry, leave it blank 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 Final Question What are the balances in the following accounts as of December 31? If an amount is zero, enter "0". Materials Work in Process Finished Goods Factory Overhead Cost of Goods Sold 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 worke 20 hours per weeks 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 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/itting supervisor approximately 5 hours per wet The knitting machines were purchased on January 1 of the current year, and cost $2,400 each, with an anticipated selle of 10 years and no salvage value. The packaging machar was purchased on the same date and cost 54,800, with the 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 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 13,750 330,490 330,490 I Predetermined Factory Overhead Rate Since 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 rute, rather than machine hours (M), Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200 Estimated total Office Manager/Knitting Supervisor wages $30,000 Estimated office utilities $4,000 Estimated factory utilities 54,800 Estimated factory rent $12,000 Activity Base Data Estimated number of Dut for the year 5,000 Estimated number of MH for the year 3,500 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 Yarn type B 700 skens $5 Amount $3.500 Name: Susan Blake Time Ticket No. 1255 Work Description: Knitting/piecing Dates Job No. 12/01-12/15 62 12/16-12/31 83 Hours Worked Unit Price Amount 65 $15 $975 103 15 1,545 Total Cost $2,520 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 $15 $1,125 88 15 1,320 Total Cost $2,445 Time Ticket No. 3923 Name: Mary Jones Work Description: Knitting/piecing I Dates Job No. Hours Worked Unit Price Amount 12/01-12/15 62 60 $15 $900 12/16-12/31 83 109 15 1,635 Total Cost $2,535 JUU COSESTEEDS 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 add the materials to the Job Cos 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 "O". 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 Total Cost Unit Cost Job 83 200 units: Direct Materials 50 Sweater vests Direct Labor $0 Total Job Cost Factory Overhead $0 Balance Dec. 1 $0 Dec. 10 Dec. 31 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 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 period December 1 through December 15. If an amount box does not require an entry, leave it blank. 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. If an amount box does not require an entry, leave it blank. Dec. 15 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 I 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 blank. Dec. 22 Dec. 22 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. 1f 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 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 On December 31, journalize the following transactions. Note that expenses (b), (c), and (d) were paid in cash. a. 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 If an amount box does not require an entry, leave it blank. 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. I 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