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 570 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $170 per hour. 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $17,100. 14. Charged 270 hours of professional time for the Obsidian trial at a rate of $250 per hour. 18. Received invoice from consultants Wadsley and Harden for $74,000 for expert testimony related to the Obsidian trial. 27. Applied office overhead at a rate of $70 per professional hour charged to the Obsidian case. 31. Paid administrative and support salaries of $41,700 for the month. 31. Used office supplies for the month, $14,100. 31. Paid professional salaries of $176,400 for the month. 31. Billed Obsidian $358,000 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 Work in Process fill in the blank 8903d701a017005_2 fill in the blank 8903d701a017005_3 Salaries Payable fill in the blank 8903d701a017005_5 fill in the blank 8903d701a017005_6 July 10 Work in Process fill in the blank 8903d701a017005_8 fill in the blank 8903d701a017005_9 Cash fill in the blank 8903d701a017005_11 fill in the blank 8903d701a017005_12 July 14 Work in Process fill in the blank 8903d701a017005_14 fill in the blank 8903d701a017005_15 Salaries Payable fill in the blank 8903d701a017005_17 fill in the blank 8903d701a017005_18 July 18 Work in Process fill in the blank 8903d701a017005_20 fill in the blank 8903d701a017005_21 Consultant Fees Payable fill in the blank 8903d701a017005_23 fill in the blank 8903d701a017005_24 July 27 Office Overhead fill in the blank 8903d701a017005_26 fill in the blank 8903d701a017005_27 Cash fill in the blank 8903d701a017005_29 fill in the blank 8903d701a017005_30 July 31 Admin. sal. fill in the blank 8903d701a017005_32 fill in the blank 8903d701a017005_33 fill in the blank 8903d701a017005_35 fill in the blank 8903d701a017005_36 July 31 Supplies fill in the blank 8903d701a017005_38 fill in the blank 8903d701a017005_39 fill in the blank 8903d701a017005_41 fill in the blank 8903d701a017005_42 July 31 Prof. sal. fill in the blank 8903d701a017005_44 fill in the blank 8903d701a017005_45 fill in the blank 8903d701a017005_47 fill in the blank 8903d701a017005_48 July 31 Billed fill in the blank 8903d701a017005_50 fill in the blank 8903d701a017005_51 fill in the blank 8903d701a017005_53 fill in the blank 8903d701a017005_54 July 31 Cost fill in the blank 8903d701a017005_56 fill in the blank 8903d701a017005_57 fill in the blank 8903d701a017005_59 fill in the blank 8903d701a017005_60 b. How much office overhead is over- or underapplied? Enter your answer as a positive number. $fill in the blank d7ef3a04cfa8f95_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 d7ef3a04cfa8f95_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 570 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $170 per hour. 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $17,100. 14. Charged 270 hours of professional time for the Obsidian trial at a rate of $250 per hour. 18. Received invoice from consultants Wadsley and Harden for $74,000 for expert testimony related to the Obsidian trial. 27. Applied office overhead at a rate of $70 per professional hour charged to the Obsidian case. 31. Paid administrative and support salaries of $41,700 for the month. 31. Used office supplies for the month, $14,100. 31. Paid professional salaries of $176,400 for the month. 31. Billed Obsidian $358,000 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 Work in Process fill in the blank 8903d701a017005_2 fill in the blank 8903d701a017005_3 Salaries Payable fill in the blank 8903d701a017005_5 fill in the blank 8903d701a017005_6 July 10 Work in Process fill in the blank 8903d701a017005_8 fill in the blank 8903d701a017005_9 Cash fill in the blank 8903d701a017005_11 fill in the blank 8903d701a017005_12 July 14 Work in Process fill in the blank 8903d701a017005_14 fill in the blank 8903d701a017005_15 Salaries Payable fill in the blank 8903d701a017005_17 fill in the blank 8903d701a017005_18 July 18 Work in Process fill in the blank 8903d701a017005_20 fill in the blank 8903d701a017005_21 Consultant Fees Payable fill in the blank 8903d701a017005_23 fill in the blank 8903d701a017005_24 July 27 Office Overhead fill in the blank 8903d701a017005_26 fill in the blank 8903d701a017005_27 Cash fill in the blank 8903d701a017005_29 fill in the blank 8903d701a017005_30 July 31 Admin. sal. fill in the blank 8903d701a017005_32 fill in the blank 8903d701a017005_33 fill in the blank 8903d701a017005_35 fill in the blank 8903d701a017005_36 July 31 Supplies fill in the blank 8903d701a017005_38 fill in the blank 8903d701a017005_39 fill in the blank 8903d701a017005_41 fill in the blank 8903d701a017005_42 July 31 Prof. sal. fill in the blank 8903d701a017005_44 fill in the blank 8903d701a017005_45 fill in the blank 8903d701a017005_47 fill in the blank 8903d701a017005_48 July 31 Billed fill in the blank 8903d701a017005_50 fill in the blank 8903d701a017005_51 fill in the blank 8903d701a017005_53 fill in the blank 8903d701a017005_54 July 31 Cost fill in the blank 8903d701a017005_56 fill in the blank 8903d701a017005_57 fill in the blank 8903d701a017005_59 fill in the blank 8903d701a017005_60 b. How much office overhead is over- or underapplied? Enter your answer as a positive number. $fill in the blank d7ef3a04cfa8f95_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 d7ef3a04cfa8f95_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 570 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $170 per hour.
10.	Reimbursed travel costs to employees for depositions related to the Obsidian case, $17,100.
14.	Charged 270 hours of professional time for the Obsidian trial at a rate of $250 per hour.
18.	Received invoice from consultants Wadsley and Harden for $74,000 for expert testimony related to the Obsidian trial.
27.	Applied office overhead at a rate of $70 per professional hour charged to the Obsidian case.
31.	Paid administrative and support salaries of $41,700 for the month.
31.	Used office supplies for the month, $14,100.
31.	Paid professional salaries of $176,400 for the month.
31.	Billed Obsidian $358,000 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	Work in Process	fill in the blank 8903d701a017005_2	fill in the blank 8903d701a017005_3
	Salaries Payable	fill in the blank 8903d701a017005_5	fill in the blank 8903d701a017005_6
July 10	Work in Process	fill in the blank 8903d701a017005_8	fill in the blank 8903d701a017005_9
	Cash	fill in the blank 8903d701a017005_11	fill in the blank 8903d701a017005_12
July 14	Work in Process	fill in the blank 8903d701a017005_14	fill in the blank 8903d701a017005_15
	Salaries Payable	fill in the blank 8903d701a017005_17	fill in the blank 8903d701a017005_18
July 18	Work in Process	fill in the blank 8903d701a017005_20	fill in the blank 8903d701a017005_21
	Consultant Fees Payable	fill in the blank 8903d701a017005_23	fill in the blank 8903d701a017005_24
July 27	Office Overhead	fill in the blank 8903d701a017005_26	fill in the blank 8903d701a017005_27
	Cash	fill in the blank 8903d701a017005_29	fill in the blank 8903d701a017005_30
July 31 Admin. sal.		fill in the blank 8903d701a017005_32	fill in the blank 8903d701a017005_33
		fill in the blank 8903d701a017005_35	fill in the blank 8903d701a017005_36
July 31 Supplies		fill in the blank 8903d701a017005_38	fill in the blank 8903d701a017005_39
		fill in the blank 8903d701a017005_41	fill in the blank 8903d701a017005_42
July 31 Prof. sal.		fill in the blank 8903d701a017005_44	fill in the blank 8903d701a017005_45
		fill in the blank 8903d701a017005_47	fill in the blank 8903d701a017005_48
July 31 Billed		fill in the blank 8903d701a017005_50	fill in the blank 8903d701a017005_51
		fill in the blank 8903d701a017005_53	fill in the blank 8903d701a017005_54
July 31 Cost		fill in the blank 8903d701a017005_56	fill in the blank 8903d701a017005_57
		fill in the blank 8903d701a017005_59	fill in the blank 8903d701a017005_60

b. How much office overhead is over- or underapplied? Enter your answer as a positive number.
$fill in the blank d7ef3a04cfa8f95_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 d7ef3a04cfa8f95_3

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