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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. The
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: Date Transaction August Charged hours of professional lawyer time to the Shadow Creek Co breech of contract suit to prepare for the trial, at a rate of $ per hour. Reimbursed travel costs to employees for depositions related to the Shadow Creek case, $ Charged hours of professional time for the Shadow Creek trial at a rate of $ per hour. Received invoice from consultants Westerly and Henninger for $ for expert testimony related to the Shadow Creek trial. Applied office overhead at a rate of $ per professional hour charged to the Shadow Creek case. Paid administrative and support salaries of $ for the month. Used office supplies for the month, $ Paid professional salaries of $ for the month. Billed Shadow Creek $ 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. DateAccountDebitCredit August Work in Process Salaries Payable August Work in Process Cash August Work in Process Salaries Payable August Work in Process Consultant Fees Payable August Work in Process Office Overhead August Admin. sal. Office Overhead Cash August Supplies Office Overhead Supplies August Prof. sal. Salaries Payable Cash August Billed Accounts Receivable Fees Earned August Cost Cost of Services Work in Process Feedback Area Feedback 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. Question Content Area b How much office overhead is over or underapplied? Enter your answer as a positive number. fill in the blank of $ 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. fill in the blank of $
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:
Date Transaction
August Charged hours of professional lawyer time to the Shadow Creek Co breech of contract suit to prepare for the trial, at a rate of $ per hour.
Reimbursed travel costs to employees for depositions related to the Shadow Creek case, $
Charged hours of professional time for the Shadow Creek trial at a rate of $ per hour.
Received invoice from consultants Westerly and Henninger for $ for expert testimony related to the Shadow Creek trial.
Applied office overhead at a rate of $ per professional hour charged to the Shadow Creek case.
Paid administrative and support salaries of $ for the month.
Used office supplies for the month, $
Paid professional salaries of $ for the month.
Billed Shadow Creek $ 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.
DateAccountDebitCredit
August
Work in Process
Salaries Payable
August
Work in Process
Cash
August
Work in Process
Salaries Payable
August
Work in Process
Consultant Fees Payable
August
Work in Process
Office Overhead
August Admin. sal.
Office Overhead
Cash
August Supplies
Office Overhead
Supplies
August Prof. sal.
Salaries Payable
Cash
August Billed
Accounts Receivable
Fees Earned
August Cost
Cost of Services
Work in Process
Feedback Area
Feedback
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.
Question Content Area
b How much office overhead is over or underapplied? Enter your answer as a positive number.
fill in the blank of $
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.
fill in the blank of $
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