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 620 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $170 per hour.
10.	Reimbursed travel costs to employees for depositions related to the Obsidian case, $22,000.
14.	Charged 180 hours of professional time for the Obsidian trial at a rate of $260 per hour.
18.	Received invoice from consultants Wadsley and Harden for $76,200 for expert testimony related to the Obsidian trial.
27.	Applied office overhead at a rate of $40 per professional hour charged to the Obsidian case.
31.	Paid administrative and support salaries of $22,700 for the month.
31.	Used office supplies for the month, $7,700.
31.	Paid professional salaries of $171,600 for the month.
31.	Billed Obsidian $322,900 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	fill in the blank 7d0ac8013fac054_2	fill in the blank 7d0ac8013fac054_3
	Salaries Payable	fill in the blank 7d0ac8013fac054_5	fill in the blank 7d0ac8013fac054_6
July 10	Work in Process	fill in the blank 7d0ac8013fac054_8	fill in the blank 7d0ac8013fac054_9
	Cash	fill in the blank 7d0ac8013fac054_11	fill in the blank 7d0ac8013fac054_12
July 14	Work in Process	fill in the blank 7d0ac8013fac054_14	fill in the blank 7d0ac8013fac054_15
	Salaries Payable	fill in the blank 7d0ac8013fac054_17	fill in the blank 7d0ac8013fac054_18
July 18	Work in Process	fill in the blank 7d0ac8013fac054_20	fill in the blank 7d0ac8013fac054_21
	Consultant Fees Payable	fill in the blank 7d0ac8013fac054_23	fill in the blank 7d0ac8013fac054_24
July 27	Work in Process	fill in the blank 7d0ac8013fac054_26	fill in the blank 7d0ac8013fac054_27
	Office Overhead	fill in the blank 7d0ac8013fac054_29	fill in the blank 7d0ac8013fac054_30
July 31 Admin. sal.	Office Overhead	fill in the blank 7d0ac8013fac054_32	fill in the blank 7d0ac8013fac054_33
	Cash	fill in the blank 7d0ac8013fac054_35	fill in the blank 7d0ac8013fac054_36
July 31 Supplies	Office Overhead	fill in the blank 7d0ac8013fac054_38	fill in the blank 7d0ac8013fac054_39
	Supplies	fill in the blank 7d0ac8013fac054_41	fill in the blank 7d0ac8013fac054_42
July 31 Prof. sal.	Salaries Payable	fill in the blank 7d0ac8013fac054_44	fill in the blank 7d0ac8013fac054_45
	Cash	fill in the blank 7d0ac8013fac054_47	fill in the blank 7d0ac8013fac054_48
July 31 Billed	Accounts Receivable	fill in the blank 7d0ac8013fac054_50	fill in the blank 7d0ac8013fac054_51
	Fees Earned	fill in the blank 7d0ac8013fac054_53	fill in the blank 7d0ac8013fac054_54
July 31 Cost	Cost of Services	fill in the blank 7d0ac8013fac054_56	fill in the blank 7d0ac8013fac054_57
	Work in Process	fill in the blank 7d0ac8013fac054_59	fill in the blank 7d0ac8013fac054_60

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b. How much office overhead is over- or underapplied? Enter your answer as a positive number. $fill in the blank d0ad9cfddfff038_1 Overapplied

c. Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services. $fill in the blank d0ad9cfddfff038_3