In October, Temptations Event Planners (TEP) planned events for two clients. TEP worked 164 hours for WardCorporation and 264 hours for Girardin Industries. TEP bills clients at the rate of $470 per hour; labor cost for itsplanning staff is $260 per hour. The total number of hours worked in October was 428, and overhead costs were$16,800. Overhead is applied to clients at $32 per planner-hour. In addition, TEP had $33,000 in marketing andadministrative costs. All transactions are on account. All services were billed.Transaction Description(a)Record labor costRecord applied(b)service overheadRecord cost of(c)services billed(d)Record actual serviceoverheadRequired:a. Show labor and overhead cost flows through T-accounts.b. Prepare an income statement for the company for October.Complete this question by entering your answers in the tabs below.Required RequiredABShow labor and overhead cost flows through T-accounts.Wages PayableWork-in-ProcessDebitCreditDebitCreditBeginningbalanceBeginningbalance111,280Ending balance0Ending balance111,280Cost of Services BilledDebitCreditService Overhead ControlDebitCreditBeginningbalanceBeginningbalanceEnding balance0Applied Service OverheadDebitCreditEnding balance0BeginningbalanceEnding balance0< Required ARequired B >

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Description: In October, Temptations Event Planners (TEP) planned events for two clients. TEP worked 164 hours for WardCorporation and 264 hours for Girardin Industries. TEP bills clients at the rate of $470 per hour; labor cost for itsplanning staff is $260 per

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In October, Temptations Event Planners (TEP) planned events for two clients. TEP worked 164 hours for Ward Corporation and 264 hours for Girardin Industries. TEP bills clients at the rate of $470 per hour; labor cost for its planning staff is $260 per hour. The total number of hours worked in October was 428, and overhead costs were $16,800. Overhead is applied to clients at $32 per planner-hour. In addition, TEP had $33,000 in marketing and administrative costs. All transactions are on account. All services were billed. Transaction Description (a) Record labor cost (b) Record applied service overhead Record cost of (c) services billed Record actual service (d) overhead Required:

In October, Temptations Event Planners (TEP) planned events for two clients. TEP worked 164 hours for Ward Corporation and 264 hours for Girardin Industries. TEP bills clients at the rate of $470 per hour; labor cost for its planning staff is $260 per hour. The total number of hours worked in October was 428, and overhead costs were $16,800. Overhead is applied to clients at $32 per planner-hour. In addition, TEP had $33,000 in marketing and administrative costs. All transactions are on account. All services were billed. Transaction Description (a) Record labor cost (b) Record applied service overhead Record cost of (c) services billed Record actual service (d) overhead Required:

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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