Homework Soursepositng sec times no incomplete or wrong answer please Mari
positng sec times no incomplete or wrong answer please !!
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 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/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.
Chart of Accounts
Nov. 30 Trial Balance
POGP Company
UNADJUSTED TRIAL BALANCE
November 30, 20Y8
1
Cash
20,000.00
2
Accounts Receivable
1,000.00
3
Supplies
200.00
4
Materials
5,000.00
5
Work in Process
5,404.00
6
Equipment
12,000.00
7
Accumulated Depreciation-Equipment
825.00
8
Accounts Payable
150.00
9
Common Stock
10,000.00
10
Retained Earnings
12,000.00
11
Dividends
18,096.00
12
Sales
307,500.00
13
Cost of Goods Sold
255,040.00
14
Factory Overhead
15.00
15
Wages Expense
13,750.00
16
Totals
330,490.00
330,490.00
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
Calculate the predetermined factory overhead rate for the current year. If required, round your answers to the nearest cent.
Materials Requisition
Time Tickets
Job Cost Sheets
Add the amounts in requirements 2(B), 3(C), and 6(C) to the appropriate areas of the following job cost sheets. If there is no amount or an amount is zero, enter \"0\". If required, round your answers to the nearest cent.
Journal
Journalize the entries in requirements 2 - 8. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 15
JOURNAL
ACCOUNTING EQUATION
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Final Question
What are the balances in the following accounts as of December 31? If an amount is zero, enter “0”.
| Required: | |||||||||||||
| 1. | Review the data in the Predetermined Factory Overhead Rate panel, and compute the predetermined factory overhead rate for POGP Company. | ||||||||||||
| 2. | On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materials Requisition panel.
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| 3. | On December 15, review the source documents on the Time Tickets panel.
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| 4. | On December 21, Job 62 is completed. Review the Job Cost Sheets panel and your journal entries. Journalize the entry to move the associated costs to the Finished Goods account.* | ||||||||||||
| 5. | On December 22, 75 of the 100 sweaters from Job 62 are sold on account for $125 each. Journalize the following transactions*:
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| 6. | On December 31, the last work day of the year for the knitters, review the source documents on the Time Tickets panel.
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| 7. | On December 31, journalize the following transactions*. Note that expenses (B), (C), and (D) were paid in cash.
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| 8. | On December 31, prepare the journal entry to dispose of the balance in the Factory Overhead account.* | ||||||||||||
| 9. | What are the balances in the following accounts as of December 31?
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Solution
1 COMPUTATION OF PREDETERMINEDFACTORY OVERHEAD RATE Estimated Factory Overhead for the Year A Estimated depreciation on equipment $1,200 B Estimated Knitting Supervisor wages $18,000 (36000*0.5) C Estimated factory utilities $4,800 D Estimated factory rent $24,000 E=A+B+C+D Estimated total Factory Overhead $48,000 F Estimated number of DLH for the year 5,000 G=E/F Predetermined Factory Overhead Rate $9.60 per DLH 2 JOURNAL ENTRY Date Account Title/Explanation Debit Credit .Dec10 Work in process-Job 83 $3,000 Material inventory $3,000 (To record issue of direct material to work in process) Job 83 200 units: Sweater vests Direct Materials Direct Labor Factory Overhead Total Job Cost Balance Dec. 1 $0 $0 $0 $0 Dec. 10 $3,000 Dec. 31 Total Cost 3 3 JOURNAL ENTRY Date Account Title/Explanation Debit Credit .Dec15 Work in process-Job 62 $3,000 (975+1125+900) Wages payable $3,000 (To report direct labor cost incurred for job 62) .Dec15 Work in process-Job 62 $1,920 (65+75+60)*9.6 Manufacturing overhead $1,920 (To recordapplied overhead on job no 62) 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 $10,324 Unit Cost 4 3 JOURNAL ENTRY Date Account Title/Explanation Debit Credit .Dec21 Finished goods $10,324 Work in process-job62 $10,324 (To record transfer of job 62 to finished goods)
