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. Problem 9-21.Cost Performance ReportActualResultBudgetVariancePartners' salary and overheadAssociates' salary and overheadTravelTelephone/fax/copyingTotal2.Bid priceBudgeted costsBudgeted profitBid priceActual costsActual profit The budget for the Goode Equipment Inc. job in P9-1 consisted of the following amounts:Partners' salary and overhead$6,300Associates' salary and overhead9,175Travel..........4,150Telephone/fax/copying.1,475The 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.

Job order costing is a method of cost accounting that assigns and accumulates manufacturing cost of an single unit of output. It is usually adopted when there is sufficient difference between the items produced or services offered.Job Order Cost Sheet Particulars Amount($) Partner's salary and overheads(6500 x 325) 6500 Associate's salary and overhead(65x 145) 9425 Travel 2800 Telephone 1740 Total 20465

Answered: Bailey and Tepe, attorneys-at-law,…

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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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.

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.
Bid price
Budgeted costs
Budgeted profit
Bid price
Actual costs
Actual profit

The budget for the Goode Equipment Inc. job in P9-1 consisted of the following amounts:
Partners' salary and overhead
$6,300
Associates' salary and overhead
9,175
Travel..........
4,150
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.

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