Job 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 670 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. 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $20,800. 14. Charged 120 hours of professional time for the Obsidian trial at a rate of $270 per hour. 18. Received invoice from consultants Wadsley and Harden for $70,400 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 $33,700 for the month. 31. Used office supplies for the month, $11,400. 31. Paid professional salaries of $163,800 for the month. 31. Billed Obsidian $309,600 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 b05d8309bfcefd4_2 fill in the blank b05d8309bfcefd4_3 fill in the blank b05d8309bfcefd4_5 fill in the blank b05d8309bfcefd4_6 July 10 fill in the blank b05d8309bfcefd4_8 fill in the blank b05d8309bfcefd4_9 fill in the blank b05d8309bfcefd4_11 fill in the blank b05d8309bfcefd4_12 July 14 fill in the blank b05d8309bfcefd4_14 fill in the blank b05d8309bfcefd4_15 fill in the blank b05d8309bfcefd4_17 fill in the blank b05d8309bfcefd4_18 July 18 fill in the blank b05d8309bfcefd4_20 fill in the blank b05d8309bfcefd4_21 fill in the blank b05d8309bfcefd4_23 fill in the blank b05d8309bfcefd4_24 July 27 fill in the blank b05d8309bfcefd4_26 fill in the blank b05d8309bfcefd4_27 fill in the blank b05d8309bfcefd4_29 fill in the blank b05d8309bfcefd4_30 July 31 Admin. sal. fill in the blank b05d8309bfcefd4_32 fill in the blank b05d8309bfcefd4_33 fill in the blank b05d8309bfcefd4_35 fill in the blank b05d8309bfcefd4_36 July 31 Supplies fill in the blank b05d8309bfcefd4_38 fill in the blank b05d8309bfcefd4_39 fill in the blank b05d8309bfcefd4_41 fill in the blank b05d8309bfcefd4_42 July 31 Prof. sal. fill in the blank b05d8309bfcefd4_44 fill in the blank b05d8309bfcefd4_45 fill in the blank b05d8309bfcefd4_47 fill in the blank b05d8309bfcefd4_48 July 31 Billed fill in the blank b05d8309bfcefd4_50 fill in the blank b05d8309bfcefd4_51 fill in the blank b05d8309bfcefd4_53 fill in the blank b05d8309bfcefd4_54 July 31 Cost fill in the blank b05d8309bfcefd4_56 fill in the blank b05d8309bfcefd4_57 fill in the blank b05d8309bfcefd4_59 fill in the blank b05d8309bfcefd4_60 b. How much office overhead is over- or underapplied? Enter your answer as a positive number. $fill in the blank c57551f4c021fbb_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 c57551f4c021fbb_3

Job 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 670 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. 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $20,800. 14. Charged 120 hours of professional time for the Obsidian trial at a rate of $270 per hour. 18. Received invoice from consultants Wadsley and Harden for $70,400 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 $33,700 for the month. 31. Used office supplies for the month, $11,400. 31. Paid professional salaries of $163,800 for the month. 31. Billed Obsidian $309,600 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 b05d8309bfcefd4_2 fill in the blank b05d8309bfcefd4_3 fill in the blank b05d8309bfcefd4_5 fill in the blank b05d8309bfcefd4_6 July 10 fill in the blank b05d8309bfcefd4_8 fill in the blank b05d8309bfcefd4_9 fill in the blank b05d8309bfcefd4_11 fill in the blank b05d8309bfcefd4_12 July 14 fill in the blank b05d8309bfcefd4_14 fill in the blank b05d8309bfcefd4_15 fill in the blank b05d8309bfcefd4_17 fill in the blank b05d8309bfcefd4_18 July 18 fill in the blank b05d8309bfcefd4_20 fill in the blank b05d8309bfcefd4_21 fill in the blank b05d8309bfcefd4_23 fill in the blank b05d8309bfcefd4_24 July 27 fill in the blank b05d8309bfcefd4_26 fill in the blank b05d8309bfcefd4_27 fill in the blank b05d8309bfcefd4_29 fill in the blank b05d8309bfcefd4_30 July 31 Admin. sal. fill in the blank b05d8309bfcefd4_32 fill in the blank b05d8309bfcefd4_33 fill in the blank b05d8309bfcefd4_35 fill in the blank b05d8309bfcefd4_36 July 31 Supplies fill in the blank b05d8309bfcefd4_38 fill in the blank b05d8309bfcefd4_39 fill in the blank b05d8309bfcefd4_41 fill in the blank b05d8309bfcefd4_42 July 31 Prof. sal. fill in the blank b05d8309bfcefd4_44 fill in the blank b05d8309bfcefd4_45 fill in the blank b05d8309bfcefd4_47 fill in the blank b05d8309bfcefd4_48 July 31 Billed fill in the blank b05d8309bfcefd4_50 fill in the blank b05d8309bfcefd4_51 fill in the blank b05d8309bfcefd4_53 fill in the blank b05d8309bfcefd4_54 July 31 Cost fill in the blank b05d8309bfcefd4_56 fill in the blank b05d8309bfcefd4_57 fill in the blank b05d8309bfcefd4_59 fill in the blank b05d8309bfcefd4_60 b. How much office overhead is over- or underapplied? Enter your answer as a positive number. $fill in the blank c57551f4c021fbb_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 c57551f4c021fbb_3

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter16: Job Order Costing

Section: Chapter Questions

Problem 15E: Job order cost accounting for a service company Obj. 3 The law firm of Furlan and Benson accumulates...

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Job 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 670 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.
10.	Reimbursed travel costs to employees for depositions related to the Obsidian case, $20,800.
14.	Charged 120 hours of professional time for the Obsidian trial at a rate of $270 per hour.
18.	Received invoice from consultants Wadsley and Harden for $70,400 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 $33,700 for the month.
31.	Used office supplies for the month, $11,400.
31.	Paid professional salaries of $163,800 for the month.
31.	Billed Obsidian $309,600 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 b05d8309bfcefd4_2	fill in the blank b05d8309bfcefd4_3
	fill in the blank b05d8309bfcefd4_5	fill in the blank b05d8309bfcefd4_6
July 10	fill in the blank b05d8309bfcefd4_8	fill in the blank b05d8309bfcefd4_9
	fill in the blank b05d8309bfcefd4_11	fill in the blank b05d8309bfcefd4_12
July 14	fill in the blank b05d8309bfcefd4_14	fill in the blank b05d8309bfcefd4_15
	fill in the blank b05d8309bfcefd4_17	fill in the blank b05d8309bfcefd4_18
July 18	fill in the blank b05d8309bfcefd4_20	fill in the blank b05d8309bfcefd4_21
	fill in the blank b05d8309bfcefd4_23	fill in the blank b05d8309bfcefd4_24
July 27	fill in the blank b05d8309bfcefd4_26	fill in the blank b05d8309bfcefd4_27
	fill in the blank b05d8309bfcefd4_29	fill in the blank b05d8309bfcefd4_30
July 31 Admin. sal.	fill in the blank b05d8309bfcefd4_32	fill in the blank b05d8309bfcefd4_33
	fill in the blank b05d8309bfcefd4_35	fill in the blank b05d8309bfcefd4_36
July 31 Supplies	fill in the blank b05d8309bfcefd4_38	fill in the blank b05d8309bfcefd4_39
	fill in the blank b05d8309bfcefd4_41	fill in the blank b05d8309bfcefd4_42
July 31 Prof. sal.	fill in the blank b05d8309bfcefd4_44	fill in the blank b05d8309bfcefd4_45
	fill in the blank b05d8309bfcefd4_47	fill in the blank b05d8309bfcefd4_48
July 31 Billed	fill in the blank b05d8309bfcefd4_50	fill in the blank b05d8309bfcefd4_51
	fill in the blank b05d8309bfcefd4_53	fill in the blank b05d8309bfcefd4_54
July 31 Cost	fill in the blank b05d8309bfcefd4_56	fill in the blank b05d8309bfcefd4_57
	fill in the blank b05d8309bfcefd4_59	fill in the blank b05d8309bfcefd4_60

b. How much office overhead is over- or underapplied? Enter your answer as a positive number.
$fill in the blank c57551f4c021fbb_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 c57551f4c021fbb_3

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