Charged 175 hours of professional (lawyer) time at a rate of $150 hour to the Obsidian Co. breech of contract suit to prepare July per 3. for the trial Reimbursed travel costs to employees for depositions related to 10. the Obsidian case, $185 Charged 260 hours of professional time for the Obsidian trial at a 14. rate of $185 per hour Received invoice from consultants Wadsley and Harden for 18. $30,000 for expert testimony related to the Obsidian trial Applied office overhead at a rate of $62 per professional hour 27. charged to the Obsidian case 31. Paid administrative and support salaries of $28,500 for the month 31. Used office supplies for the month, $4,000 31. Paid professional salaries of $74,350 for the month 31. Billed Obsidian $172,500 for successful defense of the case
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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:(attached)
a. Provide the
b. How much office
c. Determine the gross profit on the Obsidian case, assuming that
over- or underapplied office overhead is closed monthly to cost of
services.
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