Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ex 19-17 Job Order cost accounting entries for a service business The law firm of Yoo and Sachs accumulates costs associated with individual cases, using

Ex 19-17 Job Order cost accounting entries for a service business The law firm of Yoo and Sachs accumulates costs associated with individual cases, using a job order cost system. The following transaction occurred during July: July 3. Charged 500 hours of professional (lawyer) time to the Liddy Co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. 9. Reimbursed travel costs to employees for depositions related to the Liddy case, $18,500. 10. Charged 250 hours of professional time for the Liddy trial at a rate of $225 per hour. 15. Received invoice from consultants Mack and Corzine for $55,000 for expert testimony related to the Liddy trial. 22. Applied office overhead at a rate of $60 per professional hour charged to the Liddy case. 31. Paid secretarial and administrative salaries of $32,000 for the month. 31. Used office supplies for the month, $10,000. 31. Paid professional salaries of $126,000 for the month. 31. Billed Liddy #365,000 for successful defense of the case. a. Provide the journal entries for each of the above transactions. b. How much office overhead is over- or underapplied? c. Determine the gross profit on the Liddy case, assuming that over-or underapplied office overhead is closed monthly to cost of services.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Practices A Complete Guide

Authors: Gerardus Blokdyk

2023rd Edition

1038804450, 978-1038804457

More Books

Students also viewed these Accounting questions