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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: Charged 170 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $150 per hour Reimbursed travel costs to employees for depositions related to the Obsidian case $12,050. Charged 250 hours of professional time for the Obsidian trial at a rate of $180 per hour. Received invoice from consultants Wadsley and Harden for $29,050 for expert testimony related to the Obsidian trial Applied office overhead at a rate of $58 per professional hour charged to the Obsidian case. Paid administrative and support salaries of $29,110 for the month. Used office supplies for the month, $4,200. Paid professionalsalaries of $70,500 for the month. Billed Obsidian $190,600 for successful defense of the case. Jul. 3 10 14 18 27 31 31 31 31 Required A. Provide the journal entries for each of these transactions. Refer to the Chart of Accounts for exact wording of account titles. B. How much office overhead is over- or underapplied? 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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