Job Order Costing for a Service Company

The law firm of Prawitt and Bradford accumulates costs associated with individual cases, using a job order costing. The following transactions occurred during August:

Date	Transaction
August 3.	Charged 160 hours of professional (lawyer) time to the Shadow Creek Co. breech of contract suit to prepare for the trial, at a rate of $200 per hour.
10.	Reimbursed travel costs to employees for depositions related to the Shadow Creek case, $13,000.
14.	Charged 260 hours of professional time for the Shadow Creek trial at a rate of $185 per hour.
18.	Received invoice from consultants Westerly and Henninger for $40,000 for expert testimony related to the Shadow Creek trial.
27.	Applied office overhead at a rate of $70 per professional hour charged to the Shadow Creek case.
31.	Paid administrative and support salaries of $34,800 for the month.
31.	Used office supplies for the month, $3,500.
31.	Paid professional salaries of $80,100 for the month.
31.	Billed Shadow Creek $180,900 for successful defense of the case.

Question Content Area

a. Provide the journal entries for each of these transactions. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
August 3	CashCost of ServicesMaterialsSalaries PayableWork in Process	- Select -	- Select -
	Accounts PayableCashCost of ServicesSalaries PayableWork in Process	- Select -	- Select -
August 10	Accounts ReceivableCashCost of ServicesSalaries PayableWork in Process	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashCost of ServicesWork in Process	- Select -	- Select -
August 14	Accounts PayableAccounts ReceivableCost of ServicesSalaries PayableWork in Process	- Select -	- Select -
	Accounts PayableCashOffice OverheadSalaries PayableWork in Process	- Select -	- Select -
August 18	CashAccounts PayableConsultant Fees PayableOffice OverheadWork in Process	- Select -	- Select -
	Accounts PayableCashConsultant Fees PayableMaterialsWork in Process	- Select -	- Select -
August 27	CashMaterialsOffice OverheadSalaries PayableWork in Process	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashOffice OverheadWork in Process	- Select -	- Select -
August 31 Admin. sal.	Accounts PayableAccounts ReceivableCashOffice OverheadWork in Process	- Select -	- Select -
	Accounts PayableCashCost of ServicesOffice OverheadWork in Process	- Select -	- Select -
August 31 Supplies	Accounts PayableAccounts ReceivableOffice OverheadSuppliesWork in Process	- Select -	- Select -
	Accounts PayableOffice OverheadSalaries PayableSuppliesWork in Process	- Select -	- Select -
August 31 Prof. sal.	Accounts PayableAccounts ReceivbleCashSalaries PayableWork in Process	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashOffice OverheadSalaries Payable	- Select -	- Select -
August 31 Billed	Accounts PayableAccounts ReceivableCashFees EarnedOffice Overhead	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashFees EarnedOffice Overhead	- Select -	- Select -
August 31 Cost	Accounts PayableCashCost of ServicesSalaries PayableWork in Process	- Select -	- Select -
	Accounts PayableCashCost of ServicesSalaries PayableWork in Process	- Select -	- Select -

.

Question Content Area

b. How much office overhead is over- or underapplied? Enter your answer as a positive number. fill in the blank 1 of 1$

OverappliedUnderapplied

c. Determine the gross profit on the Shadow Creek case, assuming that over- or underapplied office overhead is closed monthly to cost of services. fill in the blank 1 of 1$