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 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 Nov 30 Trial Balance POGP Company Trial Balance November 30, 20Y8 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 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 $30,000 Estimated office utilities $6,000 Estimated factory utilities $4,800 Estimated factory rent $12,000 Activity Base Data Estimated 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 $5 28 per DLH Feedback Materials Requisition Date Dec 10 Req No 12255 Job No 83 Description Qty Issued Unit Price Amount Yarn type B 700 skeins $5 $3,500 Total issued $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 $20 $1,300 12 16 12 31 83 103 20 2,060 Total Cost $3,360 Time Ticket No 2274 Name Josh Porter Work Description Knitting piecing Dates Job No Hours Worked Unit Price Amount 12 01 12 15 62 75 $20 $1,500 12 16 12 31 83 88 20 1,760 Total Cost $3,260 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 $20 $1,200 12 16 12 31 83 109 20 2,180 Total Cost $3,380 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 62 100 units Sweaters Direct Materials Direct Labor Factory Overhead Total Balance Dec 1 $5,000 $300 $104 $5,404 Dec 15 fill in the blank d55574005f92037 1 fill in the blank d55574005f92037 2 fill in the blank d55574005f92037 3 fill in the blank d55574005f92037 4 Total Cost $fill in the blank d55574005f92037 5 $fill in the blank d55574005f92037 6 $fill in the blank d55574005f92037 7 $fill in the blank d55574005f92037 8 Unit Cost $fill in the blank d55574005f92037 9 Job 83 200 units Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Balance Dec 1 $0 $0 $0 $0 Dec 10 fill in the blank d55574005f92037 10 fill in the blank d55574005f92037 11 fill in the blank d55574005f92037 12 fill in the blank d55574005f92037 13 Dec 31 fill in the blank d55574005f92037 14 fill in the blank d55574005f92037 15 fill in the blank d55574005f92037 16 fill in the blank d55574005f92037 17 Total Cost $fill in the blank d55574005f92037 18 $fill in the blank d55574005f92037 19 $fill in the blank d55574005f92037 20 $fill in the blank d55574005f92037 21 Feedback 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 Work in Process fill in the blank 4b8b8401bfebfa1 2 fill in the blank 4b8b8401bfebfa1 3 Materials fill in the blank 4b8b8401bfebfa1 5 fill in the blank 4b8b8401bfebfa1 6 Feedback 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 Work in Process fill in the blank 968c600c604503f 2 fill in the blank 968c600c604503f 3 Wages Payable fill in the blank 968c600c604503f 5 fill in the blank 968c600c604503f 6 Feedback 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 Work in Process fill in the blank 7d9978fd602a066 2 fill in the blank 7d9978fd602a066 3 Factory Overhead fill in the blank 7d9978fd602a066 5 fill in the blank 7d9978fd602a066 6 Feedback 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 Finished Goods fill in the blank 5461f0f6fff9fb2 2 fill in the blank 5461f0f6fff9fb2 3 Work in Process fill in the blank 5461f0f6fff9fb2 5 fill in the blank 5461f0f6fff9fb2 6 Feedback 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 fill in the blank 33248907504b071 2 fill in the blank 33248907504b071 3 Sales fill in the blank 33248907504b071 5 fill in the blank 33248907504b071 6 Dec 22 Cost of Goods Sold fill in the blank 33248907504b071 8 fill in the blank 33248907504b071 9 Finished Goods fill in the blank 33248907504b071 11 fill in the blank 33248907504b071 12 Feedback 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 31 Work in Process fill in the blank cd2267ff4075001 2 fill in the blank cd2267ff4075001 3 Wages Payable fill in the blank cd2267ff4075001 5 fill in the blank cd2267ff4075001 6 Feedback 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 Work in Process fill in the blank b2589303702e019 2 fill in the blank b2589303702e019 3 Factory Overhead fill in the blank b2589303702e019 5 fill in the blank b2589303702e019 6

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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

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 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.

Nov. 30 Trial Balance

POGP Company Trial Balance November 30, 20Y8
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

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	$30,000
Estimated office utilities	$6,000
Estimated factory utilities	$4,800
Estimated factory rent	$12,000

Activity Base Data
Estimated 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.

$5.28 per DLH

Feedback

Materials Requisition			Date: Dec. 10
Req. No. 12255	Job No. 83
Description	Qty. Issued	Unit Price	Amount
Yarn type B	700 skeins	$5	$3,500
		Total issued	$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	$20	$1,300
12/16-12/31	83	103	20	2,060
			Total Cost	$3,360

Time Ticket	No. 2274	Name:	Josh Porter
Work Description:	Knitting/piecing
Dates	Job No.	Hours Worked	Unit Price	Amount
12/01-12/15	62	75	$20	$1,500
12/16-12/31	83	88	20	1,760
			Total Cost	$3,260

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	$20	$1,200
12/16-12/31	83	109	20	2,180
			Total Cost	$3,380

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 62	100 units:	Sweaters
	Direct Materials	Direct Labor	Factory Overhead	Total
Balance Dec. 1	$5,000	$300	$104	$5,404
Dec. 15	fill in the blank d55574005f92037_1	fill in the blank d55574005f92037_2	fill in the blank d55574005f92037_3	fill in the blank d55574005f92037_4
Total Cost	$fill in the blank d55574005f92037_5	$fill in the blank d55574005f92037_6	$fill in the blank d55574005f92037_7	$fill in the blank d55574005f92037_8
			Unit Cost	$fill in the blank d55574005f92037_9

Job 83	200 units:	Sweater vests
	Direct Materials	Direct Labor	Factory Overhead	Total Job Cost
Balance Dec. 1	$0	$0	$0	$0
Dec. 10	fill in the blank d55574005f92037_10	fill in the blank d55574005f92037_11	fill in the blank d55574005f92037_12	fill in the blank d55574005f92037_13
Dec. 31	fill in the blank d55574005f92037_14	fill in the blank d55574005f92037_15	fill in the blank d55574005f92037_16	fill in the blank d55574005f92037_17
Total Cost	$fill in the blank d55574005f92037_18	$fill in the blank d55574005f92037_19	$fill in the blank d55574005f92037_20	$fill in the blank d55574005f92037_21

Feedback

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	Work in Process	fill in the blank 4b8b8401bfebfa1_2	fill in the blank 4b8b8401bfebfa1_3
	Materials	fill in the blank 4b8b8401bfebfa1_5	fill in the blank 4b8b8401bfebfa1_6

Feedback

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	Work in Process	fill in the blank 968c600c604503f_2	fill in the blank 968c600c604503f_3
	Wages Payable	fill in the blank 968c600c604503f_5	fill in the blank 968c600c604503f_6

Feedback

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	Work in Process	fill in the blank 7d9978fd602a066_2	fill in the blank 7d9978fd602a066_3
	Factory Overhead	fill in the blank 7d9978fd602a066_5	fill in the blank 7d9978fd602a066_6

Feedback

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	Finished Goods	fill in the blank 5461f0f6fff9fb2_2	fill in the blank 5461f0f6fff9fb2_3
	Work in Process	fill in the blank 5461f0f6fff9fb2_5	fill in the blank 5461f0f6fff9fb2_6

Feedback

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	fill in the blank 33248907504b071_2	fill in the blank 33248907504b071_3
	Sales	fill in the blank 33248907504b071_5	fill in the blank 33248907504b071_6
Dec. 22	Cost of Goods Sold	fill in the blank 33248907504b071_8	fill in the blank 33248907504b071_9
	Finished Goods	fill in the blank 33248907504b071_11	fill in the blank 33248907504b071_12

Feedback

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. 31	Work in Process	fill in the blank cd2267ff4075001_2	fill in the blank cd2267ff4075001_3
	Wages Payable	fill in the blank cd2267ff4075001_5	fill in the blank cd2267ff4075001_6

Feedback

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	Work in Process	fill in the blank b2589303702e019_2	fill in the blank b2589303702e019_3
	Factory Overhead	fill in the blank b2589303702e019_5	fill in the blank b2589303702e019_6