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. 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 Paid Casper Corporation the amount due from the January 20 purchase. Jan. 30 Applied $5,980.00 of Direct Materials to job #350. Jan. 30 Applied $11,242.00 of Direct Labor to Job #350. Jan. 30 Applied factory overhead to Job #350. Transferred the completed job #350 to the Finished Goods account Jan. 31 Sold and shipped Job #350 to Lawson Corporation Jan. 31 Paid All Power and Light Company S3,160.00 for heat, power, and light. Allocate 25% for the office facilities and 75% for the factory facilities. Jan. 31 Applied S5,540.00 of Direct Materials to job #354 Applied $12,257.00 of direct labor to Job #354. Jan. 31 Jan. 31 Jan. 31 Applied factory overhead to Job #354 Record the insurance expense for January. The prepaid insurance is for 10 months: Factory 75% General 25% Jan. 31 The inventory of office supplies shows that S1670.00 of supplies were on hand. Jan. 31 Depreciation for the month is $1,120.00 for the Factory Equipment and $380.00 for the Office Equipment Amortization of the patents for the month is $390.00. (Debit Factory Overhead) Jan. 31 Jan. 31 Close the overapplied or underapplied factory overhead to Cost of Goods Sold. 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. 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 Paid Casper Corporation the amount due from the January 20 purchase. Jan. 30 Applied $5,980.00 of Direct Materials to job #350. Jan. 30 Applied $11,242.00 of Direct Labor to Job #350. Jan. 30 Applied factory overhead to Job #350. Transferred the completed job #350 to the Finished Goods account Jan. 31 Sold and shipped Job #350 to Lawson Corporation Jan. 31 Paid All Power and Light Company S3,160.00 for heat, power, and light. Allocate 25% for the office facilities and 75% for the factory facilities. Jan. 31 Applied S5,540.00 of Direct Materials to job #354 Applied $12,257.00 of direct labor to Job #354. Jan. 31 Jan. 31 Jan. 31 Applied factory overhead to Job #354 Record the insurance expense for January. The prepaid insurance is for 10 months: Factory 75% General 25% Jan. 31 The inventory of office supplies shows that S1670.00 of supplies were on hand. Jan. 31 Depreciation for the month is $1,120.00 for the Factory Equipment and $380.00 for the Office Equipment Amortization of the patents for the month is $390.00. (Debit Factory Overhead) Jan. 31 Jan. 31 Close the overapplied or underapplied factory overhead to Cost of Goods Sold