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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 Blossom Crane Cullumber Blossom Inc. $640 $6,400 74 Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $54 per auditor hour. The Blossom Inc. job is the only incomplete job at the end of November. Actual overhead for the month was $13,600. (a) Determine the cost of each job. SA Cost 11036 12426 Crane Inc. $450 $6,900 94 6557 Cullumber Inc. $290 $3,675 Balance in service contracts in process account 48 (b) Indicate the balance of the Service Contracts in Process account at the end of November. Balance in operating overhead account 11036 (c) Calculate the ending balance of the Operating Overhead account for November. Dr V

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 Blossom Crane Cullumber Blossom Inc. $640 $6,400 74 Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $54 per auditor hour. The Blossom Inc. job is the only incomplete job at the end of November. Actual overhead for the month was $13,600. (a) Determine the cost of each job. SA Cost 11036 12426 Crane Inc. $450 $6,900 94 6557 Cullumber Inc. $290 $3,675 Balance in service contracts in process account 48 (b) Indicate the balance of the Service Contracts in Process account at the end of November. Balance in operating overhead account 11036 (c) Calculate the ending balance of the Operating Overhead account for November. Dr V

FINANCIAL ACCOUNTING
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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Your answer is partially correct. 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 Blossom Crane Cullumber Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $54 per auditor hour. The Blossom Inc. job is the only incomplete job at the end of November. Actual overhead for the month was $13,600. (a) Determine the cost of each job. $ Blossom Inc. $640 $6,400 74 $ Cost 11036 Crane Inc. $450 $6,900 12426 6557 94 Cullumber Inc. $290 $3,675 48 (b) Indicate the balance of the Service Contracts in Process account at the end of November. Balance in service contracts in process account $ Balance in operating overhead account $ 11036 (c) Calculate the ending balance of the Operating Overhead account for November. Dr
Transcribed Image Text:Your answer is partially correct. 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 Blossom Crane Cullumber Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $54 per auditor hour. The Blossom Inc. job is the only incomplete job at the end of November. Actual overhead for the month was $13,600. (a) Determine the cost of each job. $ Blossom Inc. $640 $6,400 74 $ Cost 11036 Crane Inc. $450 $6,900 12426 6557 94 Cullumber Inc. $290 $3,675 48 (b) Indicate the balance of the Service Contracts in Process account at the end of November. Balance in service contracts in process account $ Balance in operating overhead account $ 11036 (c) Calculate the ending balance of the Operating Overhead account for November. Dr
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