EX $19-16$ Job order cost accounting for a service company

OBJ. $4$

The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July:

July $3.$ Charged $175$ hours of professional $($lawyer$)$ time at a rate of $$150$ per hour to the Obsidian Co$.$ breech of contract suit to prepare for the trial

$10.$ Reimbursed travel costs to employees for depositions related to the Obsidian case, $$12,500$

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

$18.$ Received invoice from consultants Wadsley and Harden for $$30,000$ for expert testimony related to the Obsidian trial

$27.$ Applied office overhead at a rate of $$62$ per professional hour charged to the Obsidian case

$31.$ Paid administrative and support salaries of $$28,500$ for the month

$31.$ Used office supplies for the month, $$4,000$

$31.$ Paid professional salaries of $$74,350$ for the month

$31.$ Billed Obsidian $$172,500$ for successful defense of the case

a$.$ Provide the journal entries for each of these transactions.

b$.$ How much office overhead is over$-$ or underapplied?

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