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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

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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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