Question
Determine cost of jobs and ending balance in work in process and overhead accounts. (LO 2, 3, 4), AP Don Lieberman and Associates, a CPA
Determine cost of jobs and ending balance in work in process and overhead accounts. (LO 2, 3, 4), AP Don Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November.
Lynn | Brian | Mike | |
Direct materials | $600 | $400 | $200 |
Auditor labor costs | $5,400 | $6,600 | $3,375 |
Auditor hours | 72 | 88 | 45 |
Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $50 per auditor hour. The Lynn job is the only incomplete job at the end of November. Actual overhead for the month was $11,000.
Instructions
(a) Determine the cost of each job.
(b) Indicate the balance of the Service Contracts in Process account at the end of November.
(c) Calculate the ending balance of the Operating Overhead account for November
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started