Job Order Cost Accounting for a Service Company 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: July 3. Charged 670 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $20,800. 14. Charged 120 hours of professional time for the Obsidian trial at a rate of $270 per hour. 18. Received invoice from consultants Wadsley and Harden for $70,400 for expert testimony related to the Obsidian trial. 27. Applied office overhead at a rate of $60 per professional hour charged to the Obsidian case. 31. Paid administrative and support salaries of $33,700 for the month. 31. Used office supplies for the month, $11,400. 31. Paid professional salaries of $163,800 for the month. 31. Billed Obsidian $309,600 for successful defense of the case. a. Provide the journal entries for each of these transactions. If an amount box does not require an entry, leave it blank. July 3 fill in the blank b05d8309bfcefd4_2 fill in the blank b05d8309bfcefd4_3 fill in the blank b05d8309bfcefd4_5 fill in the blank b05d8309bfcefd4_6 July 10 fill in the blank b05d8309bfcefd4_8 fill in the blank b05d8309bfcefd4_9 fill in the blank b05d8309bfcefd4_11 fill in the blank b05d8309bfcefd4_12 July 14 fill in the blank b05d8309bfcefd4_14 fill in the blank b05d8309bfcefd4_15 fill in the blank b05d8309bfcefd4_17 fill in the blank b05d8309bfcefd4_18 July 18 fill in the blank b05d8309bfcefd4_20 fill in the blank b05d8309bfcefd4_21 fill in the blank b05d8309bfcefd4_23 fill in the blank b05d8309bfcefd4_24 July 27 fill in the blank b05d8309bfcefd4_26 fill in the blank b05d8309bfcefd4_27 fill in the blank b05d8309bfcefd4_29 fill in the blank b05d8309bfcefd4_30 July 31 Admin. sal. fill in the blank b05d8309bfcefd4_32 fill in the blank b05d8309bfcefd4_33 fill in the blank b05d8309bfcefd4_35 fill in the blank b05d8309bfcefd4_36 July 31 Supplies fill in the blank b05d8309bfcefd4_38 fill in the blank b05d8309bfcefd4_39 fill in the blank b05d8309bfcefd4_41 fill in the blank b05d8309bfcefd4_42 July 31 Prof. sal. fill in the blank b05d8309bfcefd4_44 fill in the blank b05d8309bfcefd4_45 fill in the blank b05d8309bfcefd4_47 fill in the blank b05d8309bfcefd4_48 July 31 Billed fill in the blank b05d8309bfcefd4_50 fill in the blank b05d8309bfcefd4_51 fill in the blank b05d8309bfcefd4_53 fill in the blank b05d8309bfcefd4_54 July 31 Cost fill in the blank b05d8309bfcefd4_56 fill in the blank b05d8309bfcefd4_57 fill in the blank b05d8309bfcefd4_59 fill in the blank b05d8309bfcefd4_60 b. How much office overhead is over- or underapplied? Enter your answer as a positive number. $fill in the blank c57551f4c021fbb_1 c. Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services. $fill in the blank c57551f4c021fbb_3
Job Order Cost Accounting for a Service Company 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: July 3. Charged 670 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $20,800. 14. Charged 120 hours of professional time for the Obsidian trial at a rate of $270 per hour. 18. Received invoice from consultants Wadsley and Harden for $70,400 for expert testimony related to the Obsidian trial. 27. Applied office overhead at a rate of $60 per professional hour charged to the Obsidian case. 31. Paid administrative and support salaries of $33,700 for the month. 31. Used office supplies for the month, $11,400. 31. Paid professional salaries of $163,800 for the month. 31. Billed Obsidian $309,600 for successful defense of the case. a. Provide the journal entries for each of these transactions. If an amount box does not require an entry, leave it blank. July 3 fill in the blank b05d8309bfcefd4_2 fill in the blank b05d8309bfcefd4_3 fill in the blank b05d8309bfcefd4_5 fill in the blank b05d8309bfcefd4_6 July 10 fill in the blank b05d8309bfcefd4_8 fill in the blank b05d8309bfcefd4_9 fill in the blank b05d8309bfcefd4_11 fill in the blank b05d8309bfcefd4_12 July 14 fill in the blank b05d8309bfcefd4_14 fill in the blank b05d8309bfcefd4_15 fill in the blank b05d8309bfcefd4_17 fill in the blank b05d8309bfcefd4_18 July 18 fill in the blank b05d8309bfcefd4_20 fill in the blank b05d8309bfcefd4_21 fill in the blank b05d8309bfcefd4_23 fill in the blank b05d8309bfcefd4_24 July 27 fill in the blank b05d8309bfcefd4_26 fill in the blank b05d8309bfcefd4_27 fill in the blank b05d8309bfcefd4_29 fill in the blank b05d8309bfcefd4_30 July 31 Admin. sal. fill in the blank b05d8309bfcefd4_32 fill in the blank b05d8309bfcefd4_33 fill in the blank b05d8309bfcefd4_35 fill in the blank b05d8309bfcefd4_36 July 31 Supplies fill in the blank b05d8309bfcefd4_38 fill in the blank b05d8309bfcefd4_39 fill in the blank b05d8309bfcefd4_41 fill in the blank b05d8309bfcefd4_42 July 31 Prof. sal. fill in the blank b05d8309bfcefd4_44 fill in the blank b05d8309bfcefd4_45 fill in the blank b05d8309bfcefd4_47 fill in the blank b05d8309bfcefd4_48 July 31 Billed fill in the blank b05d8309bfcefd4_50 fill in the blank b05d8309bfcefd4_51 fill in the blank b05d8309bfcefd4_53 fill in the blank b05d8309bfcefd4_54 July 31 Cost fill in the blank b05d8309bfcefd4_56 fill in the blank b05d8309bfcefd4_57 fill in the blank b05d8309bfcefd4_59 fill in the blank b05d8309bfcefd4_60 b. How much office overhead is over- or underapplied? Enter your answer as a positive number. $fill in the blank c57551f4c021fbb_1 c. Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services. $fill in the blank c57551f4c021fbb_3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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.
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Question
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:
| July 3. | Charged 670 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. |
| 10. | Reimbursed travel costs to employees for depositions related to the Obsidian case, $20,800. |
| 14. | Charged 120 hours of professional time for the Obsidian trial at a rate of $270 per hour. |
| 18. | Received invoice from consultants Wadsley and Harden for $70,400 for expert testimony related to the Obsidian trial. |
| 27. | Applied office |
| 31. | Paid administrative and support salaries of $33,700 for the month. |
| 31. | Used office supplies for the month, $11,400. |
| 31. | Paid professional salaries of $163,800 for the month. |
| 31. | Billed Obsidian $309,600 for successful defense of the case. |
a. Provide the
| July 3 | fill in the blank b05d8309bfcefd4_2 | fill in the blank b05d8309bfcefd4_3 | |
| fill in the blank b05d8309bfcefd4_5 | fill in the blank b05d8309bfcefd4_6 | ||
| July 10 | fill in the blank b05d8309bfcefd4_8 | fill in the blank b05d8309bfcefd4_9 | |
| fill in the blank b05d8309bfcefd4_11 | fill in the blank b05d8309bfcefd4_12 | ||
| July 14 | fill in the blank b05d8309bfcefd4_14 | fill in the blank b05d8309bfcefd4_15 | |
| fill in the blank b05d8309bfcefd4_17 | fill in the blank b05d8309bfcefd4_18 | ||
| July 18 | fill in the blank b05d8309bfcefd4_20 | fill in the blank b05d8309bfcefd4_21 | |
| fill in the blank b05d8309bfcefd4_23 | fill in the blank b05d8309bfcefd4_24 | ||
| July 27 | fill in the blank b05d8309bfcefd4_26 | fill in the blank b05d8309bfcefd4_27 | |
| fill in the blank b05d8309bfcefd4_29 | fill in the blank b05d8309bfcefd4_30 | ||
| July 31 Admin. sal. | fill in the blank b05d8309bfcefd4_32 | fill in the blank b05d8309bfcefd4_33 | |
| fill in the blank b05d8309bfcefd4_35 | fill in the blank b05d8309bfcefd4_36 | ||
| July 31 Supplies | fill in the blank b05d8309bfcefd4_38 | fill in the blank b05d8309bfcefd4_39 | |
| fill in the blank b05d8309bfcefd4_41 | fill in the blank b05d8309bfcefd4_42 | ||
| July 31 Prof. sal. | fill in the blank b05d8309bfcefd4_44 | fill in the blank b05d8309bfcefd4_45 | |
| fill in the blank b05d8309bfcefd4_47 | fill in the blank b05d8309bfcefd4_48 | ||
| July 31 Billed | fill in the blank b05d8309bfcefd4_50 | fill in the blank b05d8309bfcefd4_51 | |
| fill in the blank b05d8309bfcefd4_53 | fill in the blank b05d8309bfcefd4_54 | ||
| July 31 Cost | fill in the blank b05d8309bfcefd4_56 | fill in the blank b05d8309bfcefd4_57 | |
| fill in the blank b05d8309bfcefd4_59 | fill in the blank b05d8309bfcefd4_60 |
b. How much office overhead is over- or underapplied? Enter your answer as a positive number.
$fill in the blank c57551f4c021fbb_1
c. Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.
$fill in the blank c57551f4c021fbb_3
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