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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 570 hours of professional (lawyer) time at a rate of $240 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, $28,100 |
14. | Charged 280 hours of professional time for the Obsidian trial at a rate of $260 per hour |
18. | Received invoice from consultants Wadsley and Harden for $51,800 for expert testimony related to the Obsidian trial |
27. | Applied office overhead at a rate of $70 per professional hour charged to the Obsidian case |
31. | Paid administrative and support salaries of $42,200 for the month |
31. | Used office supplies for the month, $14,300 |
31. | Paid professional salaries of $160,100 for the month |
31. | Billed Obsidian $397,900 for successful defense of the case |
a. Provide the journal entries for each of these transactions.
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