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Job Order Costing for a Service Company The law firm of Prawitt and Bradford accumulates costs associated with individual cases, using job order costing. The following transactions occurred during August: Date Transaction August 3. Charged 410 hours of professional (lawyer) time to the Shadow Creek Co. breech of contract suit to prepare for the trial, at a rate of $180 per hour. 10. Reimbursed travel costs to employees for depositions related to the Shadow Creek case, $16,600. 14. Charged 240 hours of professional time for the Shadow Creek trial at a rate of $290 per hour. 18. Received invoice from consultants Westerly and Henninger for $55,100 for expert testimony related to the Shadow Creek trial. 27. Applied office overhead at a rate of $80 per professional hour charged to the Shadow Creek case. 31. Paid administrative and support salaries of $36,900 for the month

Job Order Costing for a Service Company The law firm of Prawitt and Bradford accumulates costs associated with individual cases, using job order costing. The following transactions occurred during August: Date Transaction August 3. Charged 410 hours of professional (lawyer) time to the Shadow Creek Co. breech of contract suit to prepare for the trial, at a rate of $180 per hour. 10. Reimbursed travel costs to employees for depositions related to the Shadow Creek case, $16,600. 14. Charged 240 hours of professional time for the Shadow Creek trial at a rate of $290 per hour. 18. Received invoice from consultants Westerly and Henninger for $55,100 for expert testimony related to the Shadow Creek trial. 27. Applied office overhead at a rate of $80 per professional hour charged to the Shadow Creek case. 31. Paid administrative and support salaries of $36,900 for the month

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 16E: Job order cost accounting for a service company The Fly Company provides advertising services for...
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Job Order Costing for a Service Company The law firm of Prawitt and Bradford accumulates costs associated with individual cases, using job order costing. The following transactions occurred during August: Date Transaction August 3. Charged 410 hours of professional (lawyer) time to the Shadow Creek Co. breech of contract suit to prepare for the trial, at a rate of $180 per hour. 10. Reimbursed travel costs to employees for depositions related to the Shadow Creek case, $16,600. 14. Charged 240 hours of professional time for the Shadow Creek trial at a rate of $290 per hour. 18. Received invoice from consultants Westerly and Henninger for $55,100 for expert testimony related to the Shadow Creek trial. 27. Applied office overhead at a rate of $80 per professional hour charged to the Shadow Creek case. 31. Paid administrative and support salaries of $36,900 for the month. 31. Used office supplies for the month, $12,500. 31. Paid professional salaries of $157,800 for the month. 31. Billed Shadow Creek $304,200 for successful defense of the case. Question Content Area a. Provide the journal entries for each of these transactions. If an amount box does not require an entry, leave it blank. DateAccountDebitCredit August 3 August 10 August 14 August 18 August 27 August 31 Admin. sal. August 31 Supplies August 31 Prof. sal. August 31 Billed August 31 Cost Question Content Area b. How much office overhead is over- or underapplied? Enter your answer as a positive number. fill in the blank 1 of 1$ c. Determine the gross profit on the Shadow Creek case, assuming that over- or underapplied office overhead is closed monthly to cost of services. fill in the blank 1 of 1$
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