Question
ob Order Cost Accounting for a Service Company The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order
ob Order Cost Accounting for a 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 during July:
July 3. | Charged 600 hours of professional (lawyer) time to the Obsidian 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 Obsidian case, $14,600. |
14. | Charged 300 hours of professional time for the Obsidian trial at a rate of $280 per hour. |
18. | Received invoice from consultants Wadsley and Harden for $46,300 for expert testimony related to the Obsidian trial. |
27. | Applied office overhead at a rate of $60 per professional hour charged to the Obsidian case. |
31. | Paid administrative and support salaries of $38,300 for the month. |
31. | Used office supplies for the month, $13,000. |
31. | Paid professional salaries of $166,600 for the month. |
31. | Billed Obsidian $363,600 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.
July 3 | fill in the blank 8d560ff98f86051_2 | fill in the blank 8d560ff98f86051_3 | |
fill in the blank 8d560ff98f86051_5 | fill in the blank 8d560ff98f86051_6 | ||
July 10 | fill in the blank 8d560ff98f86051_8 | fill in the blank 8d560ff98f86051_9 | |
fill in the blank 8d560ff98f86051_11 | fill in the blank 8d560ff98f86051_12 | ||
July 14 | fill in the blank 8d560ff98f86051_14 | fill in the blank 8d560ff98f86051_15 | |
fill in the blank 8d560ff98f86051_17 | fill in the blank 8d560ff98f86051_18 | ||
July 18 | fill in the blank 8d560ff98f86051_20 | fill in the blank 8d560ff98f86051_21 | |
fill in the blank 8d560ff98f86051_23 | fill in the blank 8d560ff98f86051_24 | ||
July 27 | fill in the blank 8d560ff98f86051_26 | fill in the blank 8d560ff98f86051_27 | |
fill in the blank 8d560ff98f86051_29 | fill in the blank 8d560ff98f86051_30 | ||
July 31 Admin. sal. | fill in the blank 8d560ff98f86051_32 | fill in the blank 8d560ff98f86051_33 | |
fill in the blank 8d560ff98f86051_35 | fill in the blank 8d560ff98f86051_36 | ||
July 31 Supplies | fill in the blank 8d560ff98f86051_38 | fill in the blank 8d560ff98f86051_39 | |
fill in the blank 8d560ff98f86051_41 | fill in the blank 8d560ff98f86051_42 | ||
July 31 Prof. sal. | fill in the blank 8d560ff98f86051_44 | fill in the blank 8d560ff98f86051_45 | |
fill in the blank 8d560ff98f86051_47 | fill in the blank 8d560ff98f86051_48 | ||
July 31 Billed | fill in the blank 8d560ff98f86051_50 | fill in the blank 8d560ff98f86051_51 | |
fill in the blank 8d560ff98f86051_53 | fill in the blank 8d560ff98f86051_54 | ||
July 31 Cost | fill in the blank 8d560ff98f86051_56 | fill in the blank 8d560ff98f86051_57 | |
fill in the blank 8d560ff98f86051_59 | fill in the blank 8d560ff98f86051_60 |
b. How much office overhead is over- or underapplied? Enter your answer as a positive number. $fill in the blank 0be1d8f43f9400f_1
c. Determine the gross profit on the Obsidian case, assuming that over-or underapplied office overhead is closed monthly to cost of services. $fill in the blank 0be1d8f43f9400f_3
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