Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Job order cost accounting for service company. The law firm of Furlan and Benson accumulates costs associated with individual cases using a job order cost
Job order cost accounting for 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 July
Job Order Cost Accounting for a Service Company The taw firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cont system. The following transactions occurred during July July 3, Charged 410 hours of professional (lawyer) time to the Obsidian Cobreech of contract suit to prepare for the trial, at a rate of $100 per hour 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, 516,300. 14. Charged 250 hours of professional time for the Obsidian trial at a rate of $270 per hour, 18. Received Invoice from consultants Wadsley and Harden for $53,500 for expert testimony related to the Obsidian trial 27. Applied office overhead at a rate of $50 per professional hour charged to the Obsidian case 1. Poid administrative and support salaries of $23,400 for the month 31. Used office supplies for the month, $7,900. 1. Pald professional stories of $156,200 for the month 3. Billed Obsidian $283,500 for successful defense of the case Provide the journal entries for each of these transaction. If on mourt tox does not require an entry, leave it blank Work in Process Salaries Payable July 10 Work In Process Cash July I. IL II II Work in Process Salaries Payable Work in Process July 18 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 July 31 Billed July 31 Cost 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 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started