**P9-1: Job Cost Sheet for a Service Business****LO1**Bailey and Tepe, attorneys-at-law, provided legal representation to Goode Equipment Inc. in a product liability suit. Twenty partner hours and 65 associate hours were worked in defending the company. The cost of each partner hour is $325, which includes partner wages plus overhead, based on direct labor cost. The cost of each associate hour is $145, which also includes wages and overhead. Other costs that can be directly identified with the job are travel ($2,800) and telephone/fax/copying charges ($1,740). The date Goode contracted with Bailey and Tepe was May 8, 2016, and the defense was successfully completed on December 21, 2016. The engagement number is 525.**REQUIRED:**Prepare a job order cost sheet, in good form, for Goode Equipment Inc.---**P9-2: Cost Performance Report and Budgeted Profit and Actual Profit for a Service Business****LO1**The budget for the Goode Equipment Inc. job in P9-1 consisted of the following amounts:| Expense Type | Amount ||--------------------------------------|---------|| Partners' salary and overhead | $6,300 || Associates' salary and overhead | $9,175 || Travel | $4,160 || Telephone/fax/copying | $1,475 |The successful bid price of the job was $30,000.**REQUIRED:**1. Prepare a cost performance report.2. Compute the budgeted profit and the actual profit on the job. **Problem 9-2****1. Cost Performance Report**| | Actual Result | Budget | Variance ||---------------------------|---------------|--------|----------|| Partners' salary and overhead | | | || Associates' salary and overhead | | | || Travel | | | || Telephone/fax/copying | | | || **Total** | | | |**2. Financial Summary**- **Bid price**- **Budgeted costs**- **Budgeted profit**- **Bid price**- **Actual costs**- **Actual profit** **Explanation:**- The **Cost Performance Report** is a table designed to track and compare budgeted costs against actual results for various expenses, with categories including salaries, travel, and communication costs like telephone, fax, and copying. There is a section for variance to show how much the actual costs differ from the budgeted amounts.- The second section presents a **Financial Summary**, comparing bid price, costs, and profits for both budgeted and actual figures. This is useful for analyzing financial performance against projections.

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Answered: Prepare a job order cost sheet, in good…

Business

Accounting

Prepare a job order cost sheet, in good form, for Goode Equipment Inc.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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**P9-1: Job Cost Sheet for a Service Business**

**LO1**

Bailey and Tepe, attorneys-at-law, provided legal representation to Goode Equipment Inc. in a product liability suit. Twenty partner hours and 65 associate hours were worked in defending the company. The cost of each partner hour is $325, which includes partner wages plus overhead, based on direct labor cost. The cost of each associate hour is $145, which also includes wages and overhead. Other costs that can be directly identified with the job are travel ($2,800) and telephone/fax/copying charges ($1,740). The date Goode contracted with Bailey and Tepe was May 8, 2016, and the defense was successfully completed on December 21, 2016. The engagement number is 525.

**REQUIRED:**

Prepare a job order cost sheet, in good form, for Goode Equipment Inc.

---

**P9-2: Cost Performance Report and Budgeted Profit and Actual Profit for a Service Business**

**LO1**

The budget for the Goode Equipment Inc. job in P9-1 consisted of the following amounts:

| Expense Type | Amount |
|--------------------------------------|---------|
| Partners' salary and overhead | $6,300 |
| Associates' salary and overhead | $9,175 |
| Travel | $4,160 |
| Telephone/fax/copying | $1,475 |

The successful bid price of the job was $30,000.

**REQUIRED:**

1. Prepare a cost performance report.
2. Compute the budgeted profit and the actual profit on the job.

**Problem 9-2**

**1. Cost Performance Report**

| | Actual Result | Budget | Variance |
|---------------------------|---------------|--------|----------|
| Partners' salary and overhead | | | |
| Associates' salary and overhead | | | |
| Travel | | | |
| Telephone/fax/copying | | | |
| **Total** | | | |

**2. Financial Summary**

- **Bid price**
- **Budgeted costs**
- **Budgeted profit**

- **Bid price**
- **Actual costs**
- **Actual profit**

**Explanation:**

- The **Cost Performance Report** is a table designed to track and compare budgeted costs against actual results for various expenses, with categories including salaries, travel, and communication costs like telephone, fax, and copying. There is a section for variance to show how much the actual costs differ from the budgeted amounts.

- The second section presents a **Financial Summary**, comparing bid price, costs, and profits for both budgeted and actual figures. This is useful for analyzing financial performance against projections.

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