Question
Job Order Cost Accounting for a Service Company The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order
Job Order Cost Accounting for a Service Company
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 480 hours of professional (lawyer) time at a rate of $230 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, $15,100 |
14. | Charged 180 hours of professional time for the Obsidian trial at a rate of $290 per hour |
18. | Received invoice from consultants Wadsley and Harden for $68,900 for expert testimony related to the Obsidian trial |
27. | Applied office overhead at a rate of $45 per professional hour charged to the Obsidian case |
31. | Paid administrative and support salaries of $21,100 for the month |
31. | Used office supplies for the month, $7,100 |
31. | Paid professional salaries of $170,300 for the month |
31. | Billed Obsidian $316,000 for successful defense of the case |
Question Content Area
a. Provide the journal entries for each of these transactions. If an amount box does not require an entry, leave it blank.
b. How much office overhead is over- or underapplied? Enter your answer as a positive number.
c. Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.
The last person answered grossly incorrect. Here is a link to their answer. If your answer is similar, it is wrong.
https://www.chegg.com/homework-help/questions-and-answers/q109184685?
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