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Wonderama Playgrounds, Inc, manufactures playground equipment for parks and schools. Their business year is the calendar year and they use a job-order cost system for

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Wonderama Playgrounds, Inc, manufactures playground equipment for parks and schools. Their business year is the calendar year and they use a job-order cost system for inventory and sales. Wonderama Playgrounds, Inc, manufactures all products in a single production department. An individual job-order cost sheet is maintained for each job. The job-order cost sheet contains accumulated costs for each job, including actual direct materials, actual direct labor, and applied factory overhead. Factory overhead is applied to each job based on 125% of direct labor costs for that job. Wonderama Playgrounds, Inc. marks up all work by 40% of the job cost (sales price - total cost of job x 140%). Since Wonderama Playgrounds, Inc. sells to builders, contractors, school districts and schools, all sales are exempt from state sales tax. All sales are on account and are subject to terms of 2/10, net30 days, FOB Shipping Point. Accounts Payable is used solely for the purchase of direct materials, indirect materials, and factory supplies. All vendors expect full payment within 30 days. Operating expenses, with the exception of any accrued salaries, property taxes, and income taxes, are paid when incurred; all employees are paid at the end of the month. All cash is deposited in the bank when received and all payments are made by check. Following are the transactions for Wonderama Playgrounds, Inc. for January 2020: Jan. 17 Sold and shipped Job #351 to the Smart Contractors. Wonderama Playgrounds, Inc. uses a perpetual inventory system. Jan. 18 Purchased $6,329.00 of indirect materials and factory supplies to be used in the manufacture of all jobs currently in process, terms Net 30 days. (Hint: charge directly to Factory Overhead) Jan. 20 Accepted a job for the manufacture of a playground unit for Breakwater Unified School District. February 14 is the promised completion date. Began the job today by applying S5.986.00 of direct materials to Job #354. Jan. 20 Purchased from Casper Corporation $3.658.72 of indirect factory supplies, credit terms, net 15 days. (Hint: charge directly to Factory Overhead) Jan. 21 Received a check for $9.890.00 from Sundial Corporation for the amount due, no discount allowed. Applied $4,765.00 of direct materials to Job #350. Received a check for $9,046.00 from Everest Company for the amount due after the discount period has expired. Applied $2,359.72 of direct materials to job #352. Applied $1,586.00 of Direct Labor to Job #352, Applied factory overhead to Job #352. Transferred the completed job 352 to the Finished Goods account. Applied $4,683.87 of direct materials to job #353. Applied $3,168.00 of Direct Labor to Job #353. Jan. 27 Applied factory overhead to Job #353. Jan. 27 Transferred the completed job #353 to the Finished Goods account Received the amount due from Smart Contractors from the sale on Jan. 17. Sold and shipped Job #353 to the Grace Angelina Company, Jan. 29 Jan. 30 Jan. 30 Jan. 30 Jan. 30 Paid Casper Corporation the amount due from the January 20 purchase. Applied S5,980.00 of Direct Materials to job #350. Applied $11,242.00 of Direct Labor to Job #350. Applied factory overhead to Job #350. Wonderama Playgrounds, Inc, manufactures playground equipment for parks and schools. Their business year is the calendar year and they use a job-order cost system for inventory and sales. Wonderama Playgrounds, Inc, manufactures all products in a single production department. An individual job-order cost sheet is maintained for each job. The job-order cost sheet contains accumulated costs for each job, including actual direct materials, actual direct labor, and applied factory overhead. Factory overhead is applied to each job based on 125% of direct labor costs for that job. Wonderama Playgrounds, Inc. marks up all work by 40% of the job cost (sales price - total cost of job x 140%). Since Wonderama Playgrounds, Inc. sells to builders, contractors, school districts and schools, all sales are exempt from state sales tax. All sales are on account and are subject to terms of 2/10, net30 days, FOB Shipping Point. Accounts Payable is used solely for the purchase of direct materials, indirect materials, and factory supplies. All vendors expect full payment within 30 days. Operating expenses, with the exception of any accrued salaries, property taxes, and income taxes, are paid when incurred; all employees are paid at the end of the month. All cash is deposited in the bank when received and all payments are made by check. Following are the transactions for Wonderama Playgrounds, Inc. for January 2020: Jan. 17 Sold and shipped Job #351 to the Smart Contractors. Wonderama Playgrounds, Inc. uses a perpetual inventory system. Jan. 18 Purchased $6,329.00 of indirect materials and factory supplies to be used in the manufacture of all jobs currently in process, terms Net 30 days. (Hint: charge directly to Factory Overhead) Jan. 20 Accepted a job for the manufacture of a playground unit for Breakwater Unified School District. February 14 is the promised completion date. Began the job today by applying S5.986.00 of direct materials to Job #354. Jan. 20 Purchased from Casper Corporation $3.658.72 of indirect factory supplies, credit terms, net 15 days. (Hint: charge directly to Factory Overhead) Jan. 21 Received a check for $9.890.00 from Sundial Corporation for the amount due, no discount allowed. Applied $4,765.00 of direct materials to Job #350. Received a check for $9,046.00 from Everest Company for the amount due after the discount period has expired. Applied $2,359.72 of direct materials to job #352. Applied $1,586.00 of Direct Labor to Job #352, Applied factory overhead to Job #352. Transferred the completed job 352 to the Finished Goods account. Applied $4,683.87 of direct materials to job #353. Applied $3,168.00 of Direct Labor to Job #353. Jan. 27 Applied factory overhead to Job #353. Jan. 27 Transferred the completed job #353 to the Finished Goods account Received the amount due from Smart Contractors from the sale on Jan. 17. Sold and shipped Job #353 to the Grace Angelina Company, Jan. 29 Jan. 30 Jan. 30 Jan. 30 Jan. 30 Paid Casper Corporation the amount due from the January 20 purchase. Applied S5,980.00 of Direct Materials to job #350. Applied $11,242.00 of Direct Labor to Job #350. Applied factory overhead to Job #350

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