I need help with January 16 transaction, it got me confused please help.

Jan. 11 Applied $2,854.28 of direct materials to Job No. 1402. (Materials Requisition No. 1682) 12 Received a check from Go Paddle Sales Company for the amount due. 15 Applied $5,128.12 of direct materials to Job No. 1404. (Materials Requisition No. 1683) 16 Purchased $1,486.00 of factory supplies from Keys Supplies Inc. and paid cash. 16 Applied $6,834.00 of direct labor to Job No. 1405, which will complete the job. (Time Ticket No. 260) Applied factory overhead using the appropriate rate. Transferred the completed job to the finished goods account. 16 Sold one Standard C1 (Competition) custom stand-up paddle (SUP) board to a cash customer for $3,200.00. The cost of the goods shipped from finished goods inventory was $2,400.00. 17 Requisitioned $2,535.00 of indirect materials and factory supplies to be used in all factory jobs currently in process. (Materials Requisition No. 1684) 17 Signed a contract with Extreme Board Systems for the manufacture of 77 units Rl (Racing 1) custom stand-up paddle (SUP) boards. The promise date is February 15. The company began the job today, applying $8,840.000 of direct materials to Job No. 1407. (Materials Requisition No. 1685) 17 Paid the sales manager of Hydro Paddle Boards, Inc. $867.24 for customer entertaining.DI Hydro Paddle Boards, Inc. Schedule of Accounts Receivable January 1, 20Y8 Name Balance Aqua-Stream Paddle Board Company ............ - . . . . . $ 6,480.00 Blue Runner Sports Dealers ............................. 4,346.00 Calm Waters Board Corporation. 16,693.38 Extreme Board Systems .... 26,550.88 Fiji Stand-Up Paddle Board Co. 39,426.00 Go Paddle Sales Company ..........-- 14,429.94 HP SUP, Inc. ..... 45,883.22 Tarpon Sports Ltd. - .. . 21,031.56 Total .. $174.840.98 Hydro Paddle Boards, Inc. Schedule of Accounts Payable January 1, 20Y8 Name Balance Coco PVC Company.. $21,428.00 D H20 Corp. ....... 37,244.00 Hi-Foam Products Company.- 16,826.24 Light Hardware, Inc. ....... 18,200.00 Total .. $93,698.241 1 3 5 . I . . . INTRODUCTION The transactions in this practice set were Hydro Paddle Boards, Inc. maintains two completed by Hydro Paddle Boards, Inc. during materials accounts, one for Direct Materials and one January, the first month of the company's fiscal year. for Indirect Materials and Factory Supplies. Hydro Paddle Boards, Inc. is a manufacturing Factory overhead is applied to each job based corporation that designs and manufactures a limited on 130% of direct labor cost for that job (was variety of custom stand-up paddle (SUP) boards. The 125% in Dec). Hydro Paddle Boards, Inc. SUP boards vary in size and performance, including maintains only one factory overhead account. beginner, intermediate, advanced, competition, and Remember that debits to Factory Overhead racing boards. represent actual overhead and credits to Factory Hydro Paddle Boards, Inc. maintains a job- Overhead represent applied overhead. Since the order cost system. difference between actual factory overhead and You have accepted a position with Hydro applied factory overhead is insignificant, the Paddle Boards, Inc. as assistant controller, and you overapplied or underapplied balance is closed out to will begin your duties on January 1 of the current Cost of Goods Sold as an adjusting entry at the end of year. In your review of the previous assistant each month. controller's records, you notice some jobs were Hydro Paddle Boards, Inc. marks up all work incomplete as of December 31 of the previous year. by 40% of the job cost. Refer to the individual Job These jobs are contained in the Job Cost Records. Cost Record for the total cost of the job, and multiply You plan to complete most of these jobs in January the total cost by 140% to determine the selling price and to accept new jobs from dealers and other for each job. builders. You are responsible for the daily accounting Since Hydro Paddle Boards, Inc. sells to operations, preparation of interim financial dealers, sales are exempt from state sales tax. All statements, and end-of-month adjusting and closing sales are on account and are subject to terms of 2/10, entries. net 30 days, FOB shipping point. Sales to credit Hydro Paddle Boards, Inc. manufactures all customers expected to take the discount are recorded products in a single production department. An at the discounted amount. Sales to credit customers individual job-order cost sheet is maintained for each who do not normally pay within the discount period job. The job-order cost sheet contains accumulated are recorded at the gross amount. Since Hydro Paddle costs for each job, including actual direct materials, Boards, Inc. sells by custom order, it does not accept actual direct labor, and applied factory overhead. returns of merchandise. Gross pay for direct labor is recorded by a debit Accounts Payable is used solely for the to Work in Process. Salaries for all other factory purchase of direct materials and indirect materials personnel are recorded by a debit to Factory and factory supplies. All vendors expect full payment Overhead. Salaries of non-factory personnel within 30 days. Operating expenses, with the are recorded at the end of each month by a debit to exception of any accrued salaries, payroll taxes, the appropriate salary expense accounts. Deductions property taxes, and income taxes, are paid when for employees' FICA and federal income taxes incurred. are recorded whenever gross pay is recorded, using All cash received is deposited in the bank, and the simplified rates of 8% (for FICA, all payments are made by check. including Medicare) and 15% (for federal income When dealing with an accounts receivable or tax). All wages are paid on the last day of the accounts payable item, be sure to record the company month. All employer payroll taxes are recorded at name in the General Journal and post to the Accounts the end of the month. Payroll taxes related to Receivable Ledger or Accounts Payable Ledger. factory personnel are debited to Factory Overhead. It is January 1, and you are ready to assume O W NLol Styles Editing Dictate Editor Reuse A Files Paragraph Is Styles Is Voice Editor Reuse Files 3 s Jan. 16 Indirect Materials and Factory Supplies 1 4 8 6 .00 Cash 1 4 8 6 .00 To record purchase of Factory supplies Jan. 16 Work in Process 6 8 3 4 .00 FICA Tax Payable 5 4 6 .72 Employee's Income Tax Payable 1 0 2 5 .10 10 Salary Payable 5 2 6 2 .18 11 12 To apply the direct labor to work in process for 12 Job. 1405 3Jan. 16 Work in Process Factory Overhead 15 To apply Factory overhead to Job No. 1405 16Jan. 16 Finished Good Inventory Work in Process 18 To transfer Job completed to Finished goods for Job No. 1405 19Jan. 16 Cash 3 2 0 0 .00 20 Sales 3 2 0 0 .00 20 To record sales of one standard custom 22Jan. 16 Cost of goods sold 2 4 0 0 .00 23 Finished good inventory 24 0 0 .00 24Jan. 17 Factory Overhead 2 5 3 5 .00 24 25 Indirect Materials and Factory Supplies 2 5 3 5 00 25 26 To record indirect material and supplies - 26 requisitioned 27Jan. 17 Work in Process 8 8 4 0 .00 27 ssibility: Investigate Focus O > W P F3 F4 Q F5 F6 F7