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Job Order Costing for a Service Company

The law firm of Prawitt and Bradford accumulates costs associated with individual cases, using a job order costing. The following transactions occurred during August:

Date Transaction

August $3.$ Charged $160$ hours of professional $($lawyer$)$ time to the Shadow Creek Co$.$ breech of contract suit to prepare for the trial, at a rate of $$200$ per hour.

$10.$ Reimbursed travel costs to employees for depositions related to the Shadow Creek case, $$13,000.$

$14.$ Charged $260$ hours of professional time for the Shadow Creek trial at a rate of $$185$ per hour.

$18.$ Received invoice from consultants Westerly and Henninger for $$40,000$ for expert testimony related to the Shadow Creek trial.

$27.$ Applied office overhead at a rate of $$70$ per professional hour charged to the Shadow Creek case.

$31.$ Paid administrative and support salaries of $$34,800$ for the month.

$31.$ Used office supplies for the month, $$3,500.$

$31.$ Paid professional salaries of $$80,100$ for the month.

$31.$ Billed Shadow Creek $$180,900$ for successful defense of the case.

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a$.$ Provide the journal entries for each of these transactions. If an amount box does not require an entry, leave it blank.

DateAccountDebitCredit

August $3$

August $10$

August $14$

August $18$

August $27$

August $31$ Admin. sal.

August $31$ Supplies

August $31$ Prof. sal.

August $31$ Billed

August $31$ Cost

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b$.$ How much office overhead is over$-$ or underapplied? Enter your answer as a positive number.

fill in the blank $1$ of $1$$

c$.$ Determine the gross profit on the Shadow Creek case, assuming that over$-$ or underapplied office overhead is closed monthly to cost of services.

fill in the blank $1$ of $1$$