Mastery Problem: Job Order Costing Purl of Great Price Company Maria Young is the sole stockholder...
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Mastery Problem: Job Order Costing Purl of Great Price Company Maria Young is the sole stockholder of Purt of Great Price Company (POGP Company), which produces high-end knitted sweaters and sweater vests for sa le 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/kniting supervisor (this employee works 20 hours per week as office manager, and 20 hours per week as kniting supervisor). All wa ges 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 atso 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 use ful life of 10 years and no salvage value. The packa ging 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, 20YS Account Title Debit Credit Cash 20,000 Accounts Receiva ble 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 Predetermin ed Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the actvity tase for her pre hea rat, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated deprecia tion 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 Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Compute the predetermined factory overhead rate for the current year. 57.20 per DLH Foodback ChMy W Review the defintions ofitems that are included in factory overhead for the computation of estmated total factory overhead cosis. Materials Requisition Date: Dec. 10 Req. No. 12255 Description Job No. 83 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 Job No. Hours Worked Unit Price Am ount Dates 12/01-12/15 62 65 $15 $975 12/16-12/31 83 103 15 1,545 Total Cost $2,520 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 $15 $1, 125 12/16-12/31 83 88 15 1,320 Total Cost $2, 445 Time Ticket Work Description: Knitting/plecing No. 3923 Name: Mary Jones Dates 12/01-12/15 Job No. Hours Worked Unit Price Amount $900 62 60 $15 12/16-12/31 83 109 15 1,635 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 a On December 15, review the e ticit tables to add the appropriate amount of direct labor and factory non table to add the materials to the Job Cost Sheet for Job 83. 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 knittes, review Time Ticket tables to add the appropriate amount of direct la bor 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 3,000 1,920 4,920 Total Cost 5,000 3,300 2,024 10,324 Unit Cost 10,324 Job 83 200 units: Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Bala nce Dec. 1 $0 $0 $0 Dec. 10 3,000 Dec. 31 3,000 3,000 Total Cost Foo Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materiais 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 5,404 Materials 5,404 Foodtao 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 journa lize 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 Peodbatk On December 21, Job 62 is compie ted. Review the Job Cost She ets 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 bla nk. Dec. 21 On De cember 22, 75 of the 100 swe aters from Job 62 are sold on account for $125 each. Jounalize the following transactions: a. The entry to record the sale. b. The entry to record the transfer of costs from Anished Goods to Cost of Goo ds Sold. If an amount box does not require an entry, leave it blank, Dec. 22 Dec. 22 Pack On December 31, the last work day of the year for the knitters, review the Time Ticket tables to joumalize 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 On December 31, the last work day of the year for the knitters, review the Time Ticket tables to joumalize 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 biank. Dec. 31 Checy Incorrect 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 payrali for all employees c. One month's rent of $1,000 d. One month's factory utities of $1,275 if an amount box does not require an entry, leave it blank. Dec, 31 Accounts Receivable * Foback On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an amount box do es not require an entry, leave it blank. Dec. 31 Cost of Goods Sold 7,743 Factory Overhead 7,743 Feod Checy Wa Partally correct Final Question What are the balances in the folwing accounts as of December 31? If an amount is zero, enter "0". Materials 2,000 Work in Process Finished Goods 2,581 Factory Overhead Cost of Goods Sold Foda Chech y W Create T accounts and post the beginning balances from the Nov. 30 Trial Balance pane. Then postyour journal entries to get the Dec. 31 accaunt balances. Pck Partially correct Mastery Problem: Job Order Costing Purl of Great Price Company Maria Young is the sole stockholder of Purt of Great Price Company (POGP Company), which produces high-end knitted sweaters and sweater vests for sa le 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/kniting supervisor (this employee works 20 hours per week as office manager, and 20 hours per week as kniting supervisor). All wa ges 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 atso 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 use ful life of 10 years and no salvage value. The packa ging 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, 20YS Account Title Debit Credit Cash 20,000 Accounts Receiva ble 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 Predetermin ed Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the actvity tase for her pre hea rat, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated deprecia tion 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 Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Compute the predetermined factory overhead rate for the current year. 57.20 per DLH Foodback ChMy W Review the defintions ofitems that are included in factory overhead for the computation of estmated total factory overhead cosis. Materials Requisition Date: Dec. 10 Req. No. 12255 Description Job No. 83 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 Job No. Hours Worked Unit Price Am ount Dates 12/01-12/15 62 65 $15 $975 12/16-12/31 83 103 15 1,545 Total Cost $2,520 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 $15 $1, 125 12/16-12/31 83 88 15 1,320 Total Cost $2, 445 Time Ticket Work Description: Knitting/plecing No. 3923 Name: Mary Jones Dates 12/01-12/15 Job No. Hours Worked Unit Price Amount $900 62 60 $15 12/16-12/31 83 109 15 1,635 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 a On December 15, review the e ticit tables to add the appropriate amount of direct labor and factory non table to add the materials to the Job Cost Sheet for Job 83. 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 knittes, review Time Ticket tables to add the appropriate amount of direct la bor 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 3,000 1,920 4,920 Total Cost 5,000 3,300 2,024 10,324 Unit Cost 10,324 Job 83 200 units: Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Bala nce Dec. 1 $0 $0 $0 Dec. 10 3,000 Dec. 31 3,000 3,000 Total Cost Foo Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materiais 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 5,404 Materials 5,404 Foodtao 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 journa lize 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 Peodbatk On December 21, Job 62 is compie ted. Review the Job Cost She ets 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 bla nk. Dec. 21 On De cember 22, 75 of the 100 swe aters from Job 62 are sold on account for $125 each. Jounalize the following transactions: a. The entry to record the sale. b. The entry to record the transfer of costs from Anished Goods to Cost of Goo ds Sold. If an amount box does not require an entry, leave it blank, Dec. 22 Dec. 22 Pack On December 31, the last work day of the year for the knitters, review the Time Ticket tables to joumalize 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 On December 31, the last work day of the year for the knitters, review the Time Ticket tables to joumalize 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 biank. Dec. 31 Checy Incorrect 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 payrali for all employees c. One month's rent of $1,000 d. One month's factory utities of $1,275 if an amount box does not require an entry, leave it blank. Dec, 31 Accounts Receivable * Foback On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an amount box do es not require an entry, leave it blank. Dec. 31 Cost of Goods Sold 7,743 Factory Overhead 7,743 Feod Checy Wa Partally correct Final Question What are the balances in the folwing accounts as of December 31? If an amount is zero, enter "0". Materials 2,000 Work in Process Finished Goods 2,581 Factory Overhead Cost of Goods Sold Foda Chech y W Create T accounts and post the beginning balances from the Nov. 30 Trial Balance pane. Then postyour journal entries to get the Dec. 31 accaunt balances. Pck Partially correct Mastery Problem: Job Order Costing Purl of Great Price Company Maria Young is the sole stockholder of Purt of Great Price Company (POGP Company), which produces high-end knitted sweaters and sweater vests for sa le 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/kniting supervisor (this employee works 20 hours per week as office manager, and 20 hours per week as kniting supervisor). All wa ges 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 atso 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 use ful life of 10 years and no salvage value. The packa ging 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, 20YS Account Title Debit Credit Cash 20,000 Accounts Receiva ble 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 Predetermin ed Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the actvity tase for her pre hea rat, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated deprecia tion 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 Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Compute the predetermined factory overhead rate for the current year. 57.20 per DLH Foodback ChMy W Review the defintions ofitems that are included in factory overhead for the computation of estmated total factory overhead cosis. Materials Requisition Date: Dec. 10 Req. No. 12255 Description Job No. 83 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 Job No. Hours Worked Unit Price Am ount Dates 12/01-12/15 62 65 $15 $975 12/16-12/31 83 103 15 1,545 Total Cost $2,520 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 $15 $1, 125 12/16-12/31 83 88 15 1,320 Total Cost $2, 445 Time Ticket Work Description: Knitting/plecing No. 3923 Name: Mary Jones Dates 12/01-12/15 Job No. Hours Worked Unit Price Amount $900 62 60 $15 12/16-12/31 83 109 15 1,635 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 a On December 15, review the e ticit tables to add the appropriate amount of direct labor and factory non table to add the materials to the Job Cost Sheet for Job 83. 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 knittes, review Time Ticket tables to add the appropriate amount of direct la bor 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 3,000 1,920 4,920 Total Cost 5,000 3,300 2,024 10,324 Unit Cost 10,324 Job 83 200 units: Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Bala nce Dec. 1 $0 $0 $0 Dec. 10 3,000 Dec. 31 3,000 3,000 Total Cost Foo Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materiais 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 5,404 Materials 5,404 Foodtao 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 journa lize 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 Peodbatk On December 21, Job 62 is compie ted. Review the Job Cost She ets 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 bla nk. Dec. 21 On De cember 22, 75 of the 100 swe aters from Job 62 are sold on account for $125 each. Jounalize the following transactions: a. The entry to record the sale. b. The entry to record the transfer of costs from Anished Goods to Cost of Goo ds Sold. If an amount box does not require an entry, leave it blank, Dec. 22 Dec. 22 Pack On December 31, the last work day of the year for the knitters, review the Time Ticket tables to joumalize 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 On December 31, the last work day of the year for the knitters, review the Time Ticket tables to joumalize 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 biank. Dec. 31 Checy Incorrect 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 payrali for all employees c. One month's rent of $1,000 d. One month's factory utities of $1,275 if an amount box does not require an entry, leave it blank. Dec, 31 Accounts Receivable * Foback On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an amount box do es not require an entry, leave it blank. Dec. 31 Cost of Goods Sold 7,743 Factory Overhead 7,743 Feod Checy Wa Partally correct Final Question What are the balances in the folwing accounts as of December 31? If an amount is zero, enter "0". Materials 2,000 Work in Process Finished Goods 2,581 Factory Overhead Cost of Goods Sold Foda Chech y W Create T accounts and post the beginning balances from the Nov. 30 Trial Balance pane. Then postyour journal entries to get the Dec. 31 accaunt balances. Pck Partially correct Mastery Problem: Job Order Costing Purl of Great Price Company Maria Young is the sole stockholder of Purt of Great Price Company (POGP Company), which produces high-end knitted sweaters and sweater vests for sa le 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/kniting supervisor (this employee works 20 hours per week as office manager, and 20 hours per week as kniting supervisor). All wa ges 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 atso 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 use ful life of 10 years and no salvage value. The packa ging 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, 20YS Account Title Debit Credit Cash 20,000 Accounts Receiva ble 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 Predetermin ed Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the actvity tase for her pre hea rat, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated deprecia tion 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 Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Compute the predetermined factory overhead rate for the current year. 57.20 per DLH Foodback ChMy W Review the defintions ofitems that are included in factory overhead for the computation of estmated total factory overhead cosis. Materials Requisition Date: Dec. 10 Req. No. 12255 Description Job No. 83 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 Job No. Hours Worked Unit Price Am ount Dates 12/01-12/15 62 65 $15 $975 12/16-12/31 83 103 15 1,545 Total Cost $2,520 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 $15 $1, 125 12/16-12/31 83 88 15 1,320 Total Cost $2, 445 Time Ticket Work Description: Knitting/plecing No. 3923 Name: Mary Jones Dates 12/01-12/15 Job No. Hours Worked Unit Price Amount $900 62 60 $15 12/16-12/31 83 109 15 1,635 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 a On December 15, review the e ticit tables to add the appropriate amount of direct labor and factory non table to add the materials to the Job Cost Sheet for Job 83. 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 knittes, review Time Ticket tables to add the appropriate amount of direct la bor 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 3,000 1,920 4,920 Total Cost 5,000 3,300 2,024 10,324 Unit Cost 10,324 Job 83 200 units: Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Bala nce Dec. 1 $0 $0 $0 Dec. 10 3,000 Dec. 31 3,000 3,000 Total Cost Foo Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materiais 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 5,404 Materials 5,404 Foodtao 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 journa lize 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 Peodbatk On December 21, Job 62 is compie ted. Review the Job Cost She ets 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 bla nk. Dec. 21 On De cember 22, 75 of the 100 swe aters from Job 62 are sold on account for $125 each. Jounalize the following transactions: a. The entry to record the sale. b. The entry to record the transfer of costs from Anished Goods to Cost of Goo ds Sold. If an amount box does not require an entry, leave it blank, Dec. 22 Dec. 22 Pack On December 31, the last work day of the year for the knitters, review the Time Ticket tables to joumalize 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 On December 31, the last work day of the year for the knitters, review the Time Ticket tables to joumalize 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 biank. Dec. 31 Checy Incorrect 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 payrali for all employees c. One month's rent of $1,000 d. One month's factory utities of $1,275 if an amount box does not require an entry, leave it blank. Dec, 31 Accounts Receivable * Foback On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an amount box do es not require an entry, leave it blank. Dec. 31 Cost of Goods Sold 7,743 Factory Overhead 7,743 Feod Checy Wa Partally correct Final Question What are the balances in the folwing accounts as of December 31? If an amount is zero, enter "0". Materials 2,000 Work in Process Finished Goods 2,581 Factory Overhead Cost of Goods Sold Foda Chech y W Create T accounts and post the beginning balances from the Nov. 30 Trial Balance pane. Then postyour journal entries to get the Dec. 31 accaunt balances. Pck Partially correct Mastery Problem: Job Order Costing Purl of Great Price Company Maria Young is the sole stockholder of Purt of Great Price Company (POGP Company), which produces high-end knitted sweaters and sweater vests for sa le 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/kniting supervisor (this employee works 20 hours per week as office manager, and 20 hours per week as kniting supervisor). All wa ges 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 atso 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 use ful life of 10 years and no salvage value. The packa ging 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, 20YS Account Title Debit Credit Cash 20,000 Accounts Receiva ble 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 Predetermin ed Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the actvity tase for her pre hea rat, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated deprecia tion 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 Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Compute the predetermined factory overhead rate for the current year. 57.20 per DLH Foodback ChMy W Review the defintions ofitems that are included in factory overhead for the computation of estmated total factory overhead cosis. Materials Requisition Date: Dec. 10 Req. No. 12255 Description Job No. 83 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 Job No. Hours Worked Unit Price Am ount Dates 12/01-12/15 62 65 $15 $975 12/16-12/31 83 103 15 1,545 Total Cost $2,520 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 $15 $1, 125 12/16-12/31 83 88 15 1,320 Total Cost $2, 445 Time Ticket Work Description: Knitting/plecing No. 3923 Name: Mary Jones Dates 12/01-12/15 Job No. Hours Worked Unit Price Amount $900 62 60 $15 12/16-12/31 83 109 15 1,635 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 a On December 15, review the e ticit tables to add the appropriate amount of direct labor and factory non table to add the materials to the Job Cost Sheet for Job 83. 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 knittes, review Time Ticket tables to add the appropriate amount of direct la bor 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 3,000 1,920 4,920 Total Cost 5,000 3,300 2,024 10,324 Unit Cost 10,324 Job 83 200 units: Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Bala nce Dec. 1 $0 $0 $0 Dec. 10 3,000 Dec. 31 3,000 3,000 Total Cost Foo Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materiais 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 5,404 Materials 5,404 Foodtao 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 journa lize 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 Peodbatk On December 21, Job 62 is compie ted. Review the Job Cost She ets 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 bla nk. Dec. 21 On De cember 22, 75 of the 100 swe aters from Job 62 are sold on account for $125 each. Jounalize the following transactions: a. The entry to record the sale. b. The entry to record the transfer of costs from Anished Goods to Cost of Goo ds Sold. If an amount box does not require an entry, leave it blank, Dec. 22 Dec. 22 Pack On December 31, the last work day of the year for the knitters, review the Time Ticket tables to joumalize 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 On December 31, the last work day of the year for the knitters, review the Time Ticket tables to joumalize 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 biank. Dec. 31 Checy Incorrect 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 payrali for all employees c. One month's rent of $1,000 d. One month's factory utities of $1,275 if an amount box does not require an entry, leave it blank. Dec, 31 Accounts Receivable * Foback On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an amount box do es not require an entry, leave it blank. Dec. 31 Cost of Goods Sold 7,743 Factory Overhead 7,743 Feod Checy Wa Partally correct Final Question What are the balances in the folwing accounts as of December 31? If an amount is zero, enter "0". Materials 2,000 Work in Process Finished Goods 2,581 Factory Overhead Cost of Goods Sold Foda Chech y W Create T accounts and post the beginning balances from the Nov. 30 Trial Balance pane. Then postyour journal entries to get the Dec. 31 accaunt balances. Pck Partially correct Mastery Problem: Job Order Costing Purl of Great Price Company Maria Young is the sole stockholder of Purt of Great Price Company (POGP Company), which produces high-end knitted sweaters and sweater vests for sa le 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/kniting supervisor (this employee works 20 hours per week as office manager, and 20 hours per week as kniting supervisor). All wa ges 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 atso 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 use ful life of 10 years and no salvage value. The packa ging 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, 20YS Account Title Debit Credit Cash 20,000 Accounts Receiva ble 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 Predetermin ed Factory Overhead Rate Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the actvity tase for her pre hea rat, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated deprecia tion 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 Activity Base Data Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500 Compute the predetermined factory overhead rate for the current year. 57.20 per DLH Foodback ChMy W Review the defintions ofitems that are included in factory overhead for the computation of estmated total factory overhead cosis. Materials Requisition Date: Dec. 10 Req. No. 12255 Description Job No. 83 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 Job No. Hours Worked Unit Price Am ount Dates 12/01-12/15 62 65 $15 $975 12/16-12/31 83 103 15 1,545 Total Cost $2,520 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 $15 $1, 125 12/16-12/31 83 88 15 1,320 Total Cost $2, 445 Time Ticket Work Description: Knitting/plecing No. 3923 Name: Mary Jones Dates 12/01-12/15 Job No. Hours Worked Unit Price Amount $900 62 60 $15 12/16-12/31 83 109 15 1,635 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 a On December 15, review the e ticit tables to add the appropriate amount of direct labor and factory non table to add the materials to the Job Cost Sheet for Job 83. 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 knittes, review Time Ticket tables to add the appropriate amount of direct la bor 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 3,000 1,920 4,920 Total Cost 5,000 3,300 2,024 10,324 Unit Cost 10,324 Job 83 200 units: Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Bala nce Dec. 1 $0 $0 $0 Dec. 10 3,000 Dec. 31 3,000 3,000 Total Cost Foo Journal On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materiais 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 5,404 Materials 5,404 Foodtao 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 journa lize 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 Peodbatk On December 21, Job 62 is compie ted. Review the Job Cost She ets 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 bla nk. Dec. 21 On De cember 22, 75 of the 100 swe aters from Job 62 are sold on account for $125 each. Jounalize the following transactions: a. The entry to record the sale. b. The entry to record the transfer of costs from Anished Goods to Cost of Goo ds Sold. If an amount box does not require an entry, leave it blank, Dec. 22 Dec. 22 Pack On December 31, the last work day of the year for the knitters, review the Time Ticket tables to joumalize 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 On December 31, the last work day of the year for the knitters, review the Time Ticket tables to joumalize 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 biank. Dec. 31 Checy Incorrect 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 payrali for all employees c. One month's rent of $1,000 d. One month's factory utities of $1,275 if an amount box does not require an entry, leave it blank. Dec, 31 Accounts Receivable * Foback On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an amount box do es not require an entry, leave it blank. Dec. 31 Cost of Goods Sold 7,743 Factory Overhead 7,743 Feod Checy Wa Partally correct Final Question What are the balances in the folwing accounts as of December 31? If an amount is zero, enter "0". Materials 2,000 Work in Process Finished Goods 2,581 Factory Overhead Cost of Goods Sold Foda Chech y W Create T accounts and post the beginning balances from the Nov. 30 Trial Balance pane. Then postyour journal entries to get the Dec. 31 accaunt balances. Pck Partially correct
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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