Sandhill$Wildhorse $Blossom$Cost(b) Indicate the balance of the Service Contracts in Process account at the end of November.Balance in service contracts in process account $+ABalance in operating overhead accountk(c) Calculate the ending balance of the Operating Overhead account for November.$ Current Attempt in ProgressDon Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs inprocess at the beginning of November. Listed below are data concerning the three audit jobs worked on during November.Direct materialsAuditor labor costsAuditor hoursSandhill Inc.$710$5,80078Wildhorse In$430$7,40091Blossom Inc.$250$3,57551Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $55 per auditor hour.Sandhill Inc. job is the only incomplete job at the end of November. Actual overhead for the month was $14,000.(a) Determine the cost of each job.

Budgeting, performance review, price choices, and financial reporting are all key uses of cost…

Answered: Direct materials Auditor labor costs…

Direct materials Auditor labor costs Auditor hours Sandhill Inc. $710 $5,800 78 Wildhorse In $430 $7,400 91 Blossom Inc. $250 $3.575 51

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

100%

Sandhill
$
Wildhorse $
Blossom
$
Cost
(b) Indicate the balance of the Service Contracts in Process account at the end of November.
Balance in service contracts in process account $
+A
Balance in operating overhead account
k
(c) Calculate the ending balance of the Operating Overhead account for November.
$

Current Attempt in Progress
Don Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in
process at the beginning of November. Listed below are data concerning the three audit jobs worked on during November.
Direct materials
Auditor labor costs
Auditor hours
Sandhill Inc.
$710
$5,800
78
Wildhorse In
$430
$7,400
91
Blossom Inc.
$250
$3,575
51
Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $55 per auditor hour.
Sandhill Inc. job is the only incomplete job at the end of November. Actual overhead for the month was $14,000.
(a) Determine the cost of each job.

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