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Job Order Costing for a Service Company The law firm of Prawitt and Bradford accumulates costs associated with individual cases, using job order costing.
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 $180 per hour. 10. Reimbursed travel costs to employees for depositions related to the Shadow Creek case, $21,300. 14. Charged 150 hours of professional time for the Shadow Creek trial at a rate of $300 per hour. 18. Received invoice from consultants Westerly and Henninger for $74,600 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 $19,900 for the month. 31. Used office supplies for the month, $6,700. 31. Paid professional salaries of $194,300 for the month. 31. Billed Shadow Creek $277,500 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. August 3 August 10 August 14 August 18 Check My Work Previous Next eBook August 18 August 27 August 31 Admin, sal. August 31 Supplies August 31 Prof. sal. August 31 Billed August 31 Cost 00 00 00 00 (hing resource from Cengage b. How much office overhead is over- or underapplied? Enter your answer as a positive number, c. Determine the gross profit on the Shadow Creek case, assuming that over- or underapplied office overhead is closed monthly to cost of services. Next
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