Maria Young is the sole stockholder of Purl of Great PriceCompany (POGP Company), which produces high-end knitted sweatersand sweater vests for sale to retail outlets. The company startedin January of the current year, and employs three knitters (each ofwhom work 40 hours per week) and one office manager/knittingsupervisor (this employee works 20 hours per week as officemanager, and 20 hours per week as knitting supervisor). All wagesare paid in cash at the end of each month.

Each knitter has a knitting machine that is used about 2/3 ofthe knitter’s time, the rest of the knitter’s time being involvedin hand knitting and piecing together the garments. The companyalso has a packaging machine used to wrap the garments in plasticfor shipping, which is operated by the office manager/knittingsupervisor approximately 5 hours per week.

The knitting machines were purchased on January 1 of the currentyear, and cost $2,400 each, with an anticipated useful life of 10years and no salvage value. The packaging machine was purchased onthe same date and cost $4,800, with the same anticipated usefullife and salvage value.

	Required:
1.	Review the data in the Predetermined Factory Overhead Ratepanel, and compute the predetermined factory overhead rate for POGPCompany.
2.	On December 10, POGP Company receives an order for 200 sweatervests and assigns Job 83 to the order. Review the MaterialsRequisition panel. A. Journalize the entry to record the addition of the materials toWork in Process.* B. On the Job Cost Sheets panel, add the materials to the Job CostSheet for Job 83.
3.	On December 15, review the source documents on the Time Ticketspanel. A. Journalize the entry to record the addition of direct labor toWork in Process for the period December 1 through December15.* B. Journalize the entry to record the addition of factory overheadto Work in Process for the period December 1 through December15.* C. On the Job Cost Sheets panel, add the appropriate amount ofdirect labor and factory overhead costs to the Job Cost Sheet forJob 62 for the period December 1 through December 15.
4.	On December 21, Job 62 is completed. Review the Job Cost Sheetspanel and your journal entries. Journalize the entry to move theassociated costs to the Finished Goods account.*
5.	On December 22, 75 of the 100 sweaters from Job 62 are sold onaccount 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 Goodsto Cost of Goods Sold.
6.	On December 31, the last work day of the year for the knitters,review the source documents on the Time Tickets panel. A. Journalize the entry to record the addition of direct labor toWork in Process for the period December 16 through December31.* B. Journalize the entry to record the addition of factory overheadto Work in Process for the period December 16 through December31.* C. On the Job Cost Sheets panel, add the appropriate amount ofdirect labor and factory overhead costs to the Job Cost Sheet forJob 83 for the period December 16 through December 31.
7.	On December 31, journalize the following transactions.* Notethat 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 $1,500 D. One month’s utilities of $1,275
8.	On December 31, prepare the journal entry to dispose of thebalance in the Factory Overhead account.*
9.	What are the balances in the following accounts as of December31? A. Materials B. Work in Process C. Finished Goods D. Factory Overhead E. Cost of Goods Sold *Refer to the Chart of Accounts for exact wording of accounttitles.
CHART OF ACCOUNTS
POGP Company
General Ledger
ASSETS 110 Cash 112 Accounts Receivable 117 Supplies 118 Materials 119 Work in Process 120 Finished Goods 125 Equipment 126 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 211 Wages Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary	REVENUE 410 Sales EXPENSES 510 Cost of Goods Sold 520 Factory Overhead 525 Wages Expense

POGP Company

UNADJUSTED TRIAL BALANCE

November 30, 20Y8

	ACCOUNT TITLE	DEBIT	CREDIT
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

Materials Requisition			Date: Dec. 10
Req. No. 12255	Job No. 83
Description	Qty. Issued	Unit Price	Amount
Yarn type B	600 skeins	$5.00	$3,000
		Total issued	$3,000

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	$15.00	$975.00
12/16-12/31	83	103	$15.00	$1,545.00
			Total Cost	$2,520.00

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	$15.00	$1,125.00
12/16-12/31	83	88	$15.00	$1,320.00
			Total Cost	$2,445.00

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	$15.00	$900.00
12/16-12/31	83	109	$15.00	$1,635.00
			Total Cost	$2,535.00

Add the amounts in requirements 2(B), 3(C), and 6(C) to theappropriate areas of the following job cost sheets. If there is noamount or an amount is zero, enter "0". If required, round youranswers 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
Total Cost
			Unit Cost

Job 83	200 units:	Sweater vests
	Direct Materials	Direct Labor	Factory Overhead	Total Job Cost
Balance Dec. 1	$0	$0	$0	$0
Dec. 10
Dec. 31
Total Cost

Journalize the entries in requirements 2 - 8. Refer to the Chartof Accounts for exact wording of account titles.

What are the balances in the following accounts as of December31?

Materials
Work in Process
Finished Goods
Factory Overhead
Cost of Goods Sold