POGP Company Trial Balance November 30, 20Y8

Account TitleDebitCredit

Cash20,000

Accounts Receivable1,000

Supplies200

Materials5,000

Work in Process5,404

Equipment12,000

Accumulated Depreciation-Equipment825

Accounts Payable150

Common Stock10,000

Retained Earnings12,000

Dividends18,096

Sales307,500

Cost of Goods Sold255,040

Factory Overhead15

Wages Expense13,750

330,490330,490

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 rate, rather than machine hours (MH).

Estimated Selected Amounts for the Year

Estimated depreciation on equipment$1,200

Estimated total Office Manager/Knitting Supervisor wages$36,000

Estimated office utilities$5,000

Estimated factory utilities$4,800

Estimated factory rent$12,000

Activity Base Data

Estimated number of DLH for the year6,250

Estimated number of MH for the year4,375

Compute the predetermined factory overhead rate for the current year.

$5.76 per DLH

Feedback

Review the definitions of items that are included in factory overhead for the computation of estimated total factory overhead costs.

Materials RequisitionDate: Dec. 10

Req. No. 12255Job No. 83

DescriptionQty. IssuedUnit PriceAmount

Yarn type B600 skeins$5$3,000

Total issued$3,000

Time TicketNo. 1255Name:Susan Blake

Work Description:Knitting/piecing

DatesJob No.Hours WorkedUnit PriceAmount

12/01-12/1562 65 $15 $975

12/16-12/3183 103 15 1,545

Total Cost$2,520

Time TicketNo. 2274Name:Josh Porter

Work Description:Knitting/piecing

DatesJob No.Hours WorkedUnit PriceAmount

12/01-12/156275$15$1,125

12/16-12/318388151,320

Total Cost$2,445

Time TicketNo. 3923Name:Mary Jones

Work Description:Knitting/piecing

DatesJob No.Hours WorkedUnit PriceAmount

12/01-12/1562 60 $15$900

12/16-12/3183 109 151,635

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 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:Sweaters

Direct MaterialsDirect LaborFactory OverheadTotal

Balance Dec. 1$5,000$300$104$5,404

Dec. 15

Total Cost$$$$

Unit Cost$

Job 83200 units:Sweater vests

Direct MaterialsDirect LaborFactory OverheadTotal Job Cost

Balance Dec. 1$0$0$0$0

Dec. 10

Dec. 31

Total Cost$$$$

Feedback

Recall that the factory overhead is applied for this company using direct labor hours (DLH).

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. 10Work in Process

Materials

Feedback

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 period December 1 through December 15. If an amount box does not require an entry, leave it blank.

Dec. 15Work in Process

Wages Payable

Feedback

Partially correct

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. 15Work in Process

Factory Overhead

Feedback

Partially correct

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. 21Finished Goods

Work in Process

Feedback

Partially correct

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. 22Accounts Receivable

Sales

Dec. 22Cost of Goods Sold

Finished Goods

Feedback

Partially correct

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. 31Work in Process

Wages Payable

Feedback

Partially correct

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. 31Work in Process

Factory Overhead

Feedback

Partially correct

On December 31, journalize the following transactions. Note that expenses (b), (c), and (d) were paid in cash.

a. One months depreciation on equipment

b. One months payroll for all employees

c. 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. 31Factory Overhead

Wages Expense

Wages Payable

Cash

Accumulated Depreciation-Equipment

Feedback

Partially correct

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. 31Cost of Goods Sold

Factory Overhead

Feedback

Partially correct

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$