In October, Temptations Event Planners $($TEP$)$ planned events for two clients. TEP worked $180$ hours for Ward Corporation and $280$ hours for Girardin Industries. TEP bills clients at the rate of $$550$ per hour; labor cost for its planning staff is $$340$ per hour. The total number of hours worked in October was $460,$ and overhead costs were $$17,600.$ Overhead is applied to clients at $$32$ per plannerhour. In addition, TEP had $$37,000$ in marketing and administrative costs. All transactions are on account. All services were billed.

Transaction Description

$($a$)$ Record labor cost

$($b$)$ Record applied service overhead

$($c$)$ Record cost of services billed

$($d$)$ Record actual service overhead

Required:

a$.$ Show labor and overhead cost flows through T$-$accounts.

b$.$ Prepare an income statement for the company for October.

Complete this question by entering your answers in the tabs below.

Required $A$

Show labor and overhead cost flows through T$-$accounts.

$\backslash$table$[[$Work$-$in$-$Process$],[$Beginning balance,,,,$],[,,,,],[,,,,],[$Ending balance,,,,$],[$Service Overhead Control,,$],[$Debit$,,,],[$Beginning balance,,,,$],[,,,,],[,,,,]]$