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Order Cost Accounting for a Service Company law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system.

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Order Cost Accounting for a Service Company law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during Moly July 3. Charged 420 hours of professional (lawyer) time to the Obsidian Co, breech of contract sult 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, $17,000 14 Charged 130 hours of professional time for the Obsidian trial at a rate of $250 per hour, 18. Received invoice from consultants Wadsley and Harden for $55,000 for expert testimony related to the Obsidian trial. 27. Applied office overhead at a rate of $50 per professional hour charged to the Obsidian case 31. Pald administrative and support salaries of $19,500 for the month 31. Used office supplies for the month, $6,600 31. Paid professional salaries of $155,600 for the month 31 Bled Obsidian $246,800 for successful defense of the case a. Provide the journal entries for each of these transactions. It an amount box does not require an entry leave it blank July Work in Process 0,000 X Salaries Payable 90,000 X July 10 Work in Process 2.500 X Cash 200 x July 14 Work in Process 67.500 Work in Process 67,500 X July 14 Salaries Payable 67,500 X Work in Process 61,400 X July 18 Consultant Fees Payable 61,400 X Work in Process 52,500 X July 27 Office Overhead 52,500X 37,300X July 31 Admin. sal. Office Overhead Cost of Services X 37,300 X Office Overhead 12,600X July 31 Supplies Supplies 12,600 X Salaries Payable 19,600 X July 31 Prof. sal. Cash 19,600 X Accounts Payable X 314,300 X July 31 Billed 314.300 Fees Earned CU 19,600 July 31 Billed 314,300 X Accounts Payable X Fees Earned 314,300 X July 31 Cost 299,400 x Cost of Services Work in Process 299.400 X Feedback 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 2,600 x Overapplied c. Determine the gross profit on the Obsidian case, assuming that over or underapplied office overhead is closed monthly to cost of services 44,500X

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