FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Job Order Cost Accounting for a Service Business

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 540 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, $27,500.
14. Charged 330 hours of professional time for the Obsidian trial at a rate of $250 per hour.
18. Received invoice from consultants Wadsley and Harden for $47,100 for expert testimony related to the Obsidian trial.
27. Applied office overhead at a rate of $80 per professional hour charged to the Obsidian case.
31. Paid administrative and support salaries of $49,400 for the month.
31. Used office supplies for the month, $16,700.
31. Paid professional salaries of $157,000 for the month.
31. Billed Obsidian $349,800 for successful defense of the case.

a.  Provide the journal entries for each of these transactions.

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Provide the journal entries for each of these transactions.

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