Q$5-$

Shown below are the job cost related accounts for the law firm of Jack, Bob, and Will and their manufacturing equivalents:

$\backslash$table$[[$Law Firm Accounts,Manufacturing Firm Accounts$],[$Supplies$,$Raw Materials$],[$Salaries and Wages Payable,Factory Wages Payable$],[$Operating Overhead,Manufacturing Overhead$],[$Service Contracts in Process,Work in Process$],[$Cost of Completed Service Contracts,Cost of Goods Sold$]]$

Cost data for the month of March follow.

$3-$ Assigned labor costs based on time cards for the month which indicated labor costs of $64,800,80\%$ direct and $20\%$ indirect$).$

$4$ Operating overhead costs incurred for cash totaled

$32,000$

$5-$ Operating overhead is applied at a rate of

Work completed totaled

$75\%$ of direct attorney cost.

Instructions

$($a$)$ Journalize the transactions for March. $($Omit explanations.$)$

$($b$)$ Determine the balance of the Service Contracts in Process account. $($Use a T$-$account.$)$