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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:
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 670 hours of professional (lawyer) time at a rate of $200 per hour to the Obsidian Co. breech of contract suit to prepare for the trial 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $25,900 14. Charged 250 hours of professional time for the Obsidian trial at a rate of $270 per hour 18. Received invoice from consultants Wadsley and Harden for $49,100 for expert testimony related to the Obsidian trial 27. Applied office overhead at a rate of $75 per professional hour charged to the Obsidian case 31. Paid administrative and support salaries of $49,000 for the month 31. Used office supplies for the month, $16,600 31. Paid professional salaries of $160,700 for the month 31. Billed Obsidian $393,400 for successful defense of the case a. Provide the journal entries for each of these transactions. uy3 Work in Process Salaries uly 10 Work in Process uly 14 Work in Process Salaries uly 18 Work in Process Consultant Fees Payable uly 27 Work in Process Office Overhead July 31 Admin. sal. Office Overhead uly 31 Supplies Office Overhead July 31 Prof. sal. Salaries Payable July 31 Bled Fees Earned uly 31 Cost Cost of Services Work in Process b. How much office overhead is over- or underapplied? Enter your answer as a positive number. Overapplied c. Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services
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