Purl of Great Price Company Maria Young is the sole stockholder of Puri 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/initting 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 Eachnitter has a nating machine that is used about 3 of the knitter's time, the rest of the knitter's time being involved in hand writing and pecing 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 The krvtting machines were purchased on January 1 of the current year, and cost $2,400 each, with an anticipated sue of 10 years and no salvage value. The packaging machine was purchased on the same date and cost 54,800, with the same anticipated use life and salvage value Nov. 30 Trial Balance POGP Company Trial Balance November 30, 2048 Account Title Debit Credit 20,000 Cash Accounts Receivable 1,000 Supplies 200 Materials 5,000 Work in Process 5,404 12,000 Equipment Accumulated Depreciation-Equipment Accounts Payable 825 150 Common Stock 10,000 12,000 Retained Earnings Dividends 18,096 Sales 307,500 Cost of Goods Sold 255,040 Factory Overhead 15 Wages Expense 13,750 330,490 330,490 330,490 330,490 Predetermined Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct 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 $3,000 Estimated factory utilities $4,800 Estimated factory rent $12,000 Feedback Check My Work Recall that the factory overhead is applied for this company using direct labor hours (DLH). On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order, Review an amount box does not require an entry, leave it blank. Dec. 10 Work in Process 3,000 Materials 3,000 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 or to Work blank. Dec. 15 Work in Process 2,100 x Wages Payable 2,100 x Feedback Check My Work Partially correct On December 15, review the Time Ticket tables to journalize the entry to record the additio leave it blank. Dec. 15 Work in Process 806.4 X Factory Overhead 806.4 X Feedback Check My Work Partially correct On December 21, Job 62 is completed. Review the Job Cost Sheets and your journal entries. J blank. Dec. 21 Finished Goods 8,310.4 X Work in Process 8,310.4 X Feedback Check My Work 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. 22 Accounts Receivable Sales 9,375 9,375 6,232.8 X Dec. 22 Cost of Goods Sold Finished Goods 6,232.8 X Feedback Check My Work 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 amount box does not require an entry, leave it blank. Dec. 31 Work in Process 2,865 X Wages Payable 2,865 X On December 31, the last work day of the year for the knitters, review the Time Ticket tables to journalize the an amount box does not require an entry, leave it blank. Dec. 31 Work in Process 1,100.16 x Factory Overhead 1,100.16 X Feedback 3 Check My Work Partially correct On December 31, journalize the following transactions. Note that expenses (b), (c), and (d) were paid in cash. na month's donen 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 Factory Overhead 375 X 4,965 X 1,000 X Cash 7,240 X Accumulated Depreciation-Equipment 375 Feedback Check My Work 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 Dec. 31 Factory Overhead X 1,275 X Cash X 375 X On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an amount box does not require Dec. 31 Factory Overhead 1,275 X Cash X VX 375 X Feedback Check My Work Partially correct Final Question What are the balances in the following accounts as of December 31? If amount is zero, enter "O > Materials 2,000 Work in Process 3,000 X Finished Goods 2,077.6 X Factory Overhead 5,693.44 X Cost of Goods Sold 261,272.X Feedback