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…

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

See similar textbooks

Related questions

Question

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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions