Job Order Costing for a Service Company The law firm of Prawitt and Bradford accumulates costs associated with individual cases, using job order costing. The following transactions occurred during August: August 3. Charged 410 hours of professional (lawyer) time to the Shadow Creek Co. breech of contract suit to prepare for the trial, at a rate of $230 per hour. 10. Reimbursed travel costs to employees for depositions related to the Shadow Creek case, $21,900. 14. Charged 280 hours of professional time for the Shadow Creek trial at a rate of $270 per hour. 18. Received invoice from consultants Westerly and Henninger for $76,000 for expert testimony related to the Shadow Creek trial. 27. Applied office overhead at a rate of $50 per professional hour charged to the Shadow Creek case. 31. Paid administrative and support salaries of $24,500 for the month. 31. Used office supplies for the month, $8,300. 31. Paid professional salaries of $192,500 for the month. 31. Billed Shadow Creek $345,700 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. Check My Work a. Record the direct costs in Work in Process. Apply the overhead based on professional hours. Record actual overhead in the Office Overhead account. For cases completed, move the costs from Work in Process to Cost of Services. b. How much office overhead is over- or underapplied? Enter your answer as a positive number. Overapplied c. Determine the gross profit on the Shadow Creek case, assuming that over- or underapplied office overhead is closed monthly to cost of services. Feedback Check My Work b. Compare the actual cost and the applied cost. C. Adjust Cost of Services for underapplied or overapplied overhead