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 530 hours of professional (wyer) time to the Obsidian Co breech of contract suit to prepare for the trial, at a rate of $160 per hour 10. Reimbursed travel costs to employees for depositions related to the Obsidian case 523.700 14. Charged 150 hours of professional time for the Obsidian trial at a rate of $300 per hour 18. Received invoice from consultants Wadsley and Harden for $64.600 for expert testimony related to the Obsidian trial 27. Applied office overhead at a rate of 530 per professional hour charged to the Obsidian case 31. Paid administrative and support salaries of $30.600 for the month 31. Used office supplies for the month, 513.100 31. Paid professional salaries of 5176,000 for the month 31. Billed Obsidian $310,300 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, July 3 Work in Process Salaries Payable July 10 Work in Process Cash July 14 Work in Process Salaries Payable I II II JIJ DII III Work in Process July 18 Consultant Fees Payable Work in Process July 27 July 19 Work in Process Consultant Fees Payable July 27 Work in Process office Overhead July 31 Admin. sal Office Overhead Cash July 31 Supplies Office Overhead II II II II II II II II II II II II Supplies July 31 Prof. sal Salaries Payable Cash July 31 Billed Accounts Receivable Fees Earned July 31 Cost Cost of Services Work in Process 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. Job Order Cost Accounting for a Service Company The law firm of Furian and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July: July 3. Charged 530 hours of professional lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $160 per hour. 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $23,700. 14. Charged 150 hours of professional time for the Obsidian trial at a rate of $300 per hour 18. Received invoice from consultants Wadsley and Harden for $64,600 for expert testimony related to the Obsidian trial. 27. Applied office overhead at a rate of $80 per professional hour charged to the Obsidian case. 31. Paid administrative and support salaries of $30,600 for the month 31. Used office supplies for the month, $13,100. 31. Paid professional salaries of $176,000 for the month. 31. Billed Obsidian $310,300 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. July 3 Work in Process Salaries Payable July 10 Work in Process Cash OU II II II II II II July 14 Work in Process Salaries Payable July 18 Work in Process Consultant Fees Payable Work in Process July 27 eBook Calculator Work in Process July 18 Consultant Fees Payable III July 27 Work in Process Office Overhead July 31 Admin. sal. Office Overhead Cash July 31 Supplies Office Overhead Supplies III II II II II July 31 Prof. sal Salaries Payable Cash July 31 Billed Accounts Receivable Fees Earned II II II July 31 Cost Cost of Services Work in Process 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 se
