Homework $-$ Chapter $16$

The law firm of Prawitt and Bradford accumulates costs associated with individual cases, using job order costing.

The following transactions occurred during August:

August $3.$ Charged $650$ hours of professional $($lawyer$)$ time to the Shadow Creek Co$.$ breech of contract suit to pr hour.

$10.$ Reimbursed travel costs to employees for depositions related to the Shadow Creek case, $$19,700.$

$14.$ Charged $260$ hours of professional time for the Shadow Creek trial at a rate of $$280$ per hour.

$18.$ Received invoice from consultants Westerly and Henninger for $$68,100$ for expert testimony related to

$27.$ Applied office overhead at a rate of $$60$ per professional hour charged to the Shadow Creek case.

$31.$ Paid administrative and support salaries of $$38,800$ for the month.

$31.$ Used office supplies for the month, $$13,100.$

$31.$ Paid professional salaries of $$194,900$ for the month.

$31.$ Billed Shadow Creek $$401,300$ for successful defense of the case.

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

PART B$.$ HOW MUCH PFFICE IVERHEAD IS IVER OR UNDERAPPLIED? ENTER YOUR ANSWER AS A POSITIVE NUMBER

PART C$.$ DETERMINE THE GROSS PROFIT ON THE SHADOW CREEK CASE, ASSUMING THAT OVER OR UNDERAPPLIED OFFICE OVERHEAD IS CLOSED MONTHLY TO COST OF SERVICES