Can I get help with these entries .. Wonderama Playgrounds, Inc. manufactures pl

Question

Can I get help with these entries .. 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 ofjobs 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

Explanation / Answer

In the above question, it is not mentioned whether the help is required in posting journal entries, or preparing ledger accounts or calculation of Job order cost sheet. Therefore, I will try my level best in giving as many answers covering all areas as much as possible.

1. In the given question, value of sales (Job #350) made to Lawson corporation is not provided. Hence, I can provide the accounting entry to record the same, and can post it in the Sales and Lawson corporation (Accounts recieveables a/c). But due to no value, the accounts will remain incomplete.

Accounting entry:-

Lawson corporation (Accounts recievables a/c) Dr. $$

To Sales (Job #350) a/c $$

> In the account of Lawson corporation (Accounts recievables a/c), "To sales (Job #350)" will be posted on the debit side with the respective amount and in Sales account, "By Lawson corporation" will be posted on the credit side will the same amount.

2. Accounting entry for amount paid towards heat, power and light:-

Utilities expense a/c Dr. $3,160

To Bank a/c $3160

>Ledger posting for the above entry

UTILITIES EXPENSE LEDGER ACCOUNT

3. Accounting entry for Materila and labour:

Materials a/c Dr. $5,540

Salaries a/c Dr. $12,257

To Bank A/c $17,797   

4. Insurance expense: As the value of insurance expense is not given. Hence, to divide it between factory and general overheads will not be possible. Also, it will be not possible to determine the value of prepaid insurance expense. I would provide the accounting entry for the expenses incurred, but the ledger posting of the accounting entry and inclusion of such cost in calculation of Job Cost Sheet will not be possible as the amount is unknown.

>Insurance expense a/c Dr. $$

To Bank A/c $$

>Prepaid Insurance a/c Dr. $$

To Insurance expense a/c $$

5. For office supplies, I AM MAKING AN ASSUMPTION that the same was bought during the month of January and the value given is not the value of any opening balance of office supplies. Hence, its accoounting entry is as follows:

> Office supplies expense a/c Dr. $1,670

To Bank a/c $1,670

OFFICE SUPPLIES EXPENSE A/C

6. Depreciation accounting entries:

Depreciation a/c Dr $1,500

To Accumulated Depreciation - Factory equipment a/c $1,120

To Accumulated Depreciation - Office equipment a/c $380

> As the opening balance of both the accounts, i.e. Accumulated Depreciation-Factory equipment a/c and Accumulated Depreciation-Office equipment a/c, are not given, hence, the ledgers of the same cannot be made. Similarly, the relatd asset accounts, i.e. Factory equipment a/c and Office equipment a/c can also not be made as their opening balance or purchase value is not given.

DEPRECIATION A/C

7. Accounting entry for amortisation:

Factory overhead a/c Dr. $390

To Patents a/c $390

8. Ledger posting of Cash/Bank a/c

CASH / BANK A/C

9. COMPUTATION OF COST SHEET FOR JOB #354

With the information given and my knowledge with regards to the subject, I have tried my level best to answer your query as much as possible, as what was exactly asked in the question was not clear... I hope your queries were resolved. Though I double checked and ensured that my answer is complete, but if I missed any part of the question, the inconvenience is highly regretted. And if you liked my work and the presentation, please give a positive response and rating. Thank you

To Bank 3160 By Profit and Loss A/c (balancing fig) 3160 TOTAL 3160 TOTAL 3160

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