Homework Help is Here – Start Your Trial Now!
Business
Accounting
Queenston Professional Support (QPS) provides professional services (IT, payroll and billing, and so on) to firms requiring temporary help in those areas. QPS bills clients for its various services based on the hours its professionals spend. In January, QPS professionals billed 1,925 hours to clients and worked a total of 2,020 hours. (The difference includes time for training, preparing bids, and so on, which are considered administrative costs.) QPS bills clients at the rate of $365 per hour; labor cost for its professionals averaged $195 per hour in January. Overhead costs in January totaled $119,150. Overhead is applied to clients at $60 per labor-hour. In addition, QPS had $155,500 in marketing and administrative costs (not including the professional labor time as described). All transactions are on account. All services were billed. Transaction Description (a) Record labor cost (b) Record applied service overhead (c) Record cost of services billed (d) Record actual service overhead es Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an income statement for the company for January. Complete this question by entering your answers in the tabs below. Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Debit Beginning balance Ending balance Work-in-Process Credit Debit Credit Beginning balance Ending balance Cost of Services Billed Service Overhead Control Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Applied Service Overhead Debit Credit Beginning balance Ending balance Ending balance Required A Required B

Queenston Professional Support (QPS) provides professional services (IT, payroll and billing, and so on) to firms requiring temporary help in those areas. QPS bills clients for its various services based on the hours its professionals spend. In January, QPS professionals billed 1,925 hours to clients and worked a total of 2,020 hours. (The difference includes time for training, preparing bids, and so on, which are considered administrative costs.) QPS bills clients at the rate of $365 per hour; labor cost for its professionals averaged $195 per hour in January. Overhead costs in January totaled $119,150. Overhead is applied to clients at $60 per labor-hour. In addition, QPS had $155,500 in marketing and administrative costs (not including the professional labor time as described). All transactions are on account. All services were billed. Transaction Description (a) Record labor cost (b) Record applied service overhead (c) Record cost of services billed (d) Record actual service overhead es Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an income statement for the company for January. Complete this question by entering your answers in the tabs below. Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Debit Beginning balance Ending balance Work-in-Process Credit Debit Credit Beginning balance Ending balance Cost of Services Billed Service Overhead Control Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Applied Service Overhead Debit Credit Beginning balance Ending balance Ending balance Required A Required B

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
None
Queenston Professional Support (QPS) provides professional services (IT, payroll and billing, and so on) to firms requiring temporary help in those areas. QPS bills clients for its various services based on the hours its professionals spend. In January, QPS professionals billed 1,925 hours to clients and worked a total of 2,020 hours. (The difference includes time for training, preparing bids, and so on, which are considered administrative costs.) QPS bills clients at the rate of $365 per hour; labor cost for its professionals averaged $195 per hour in January. Overhead costs in January totaled $119,150. Overhead is applied to clients at $60 per labor-hour. In addition, QPS had $155,500 in marketing and administrative costs (not including the professional labor time as described). All transactions are on account. All services were billed. Transaction Description (a) Record labor cost (b) Record applied service overhead (c) Record cost of services billed (d) Record actual service overhead es Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an income statement for the company for January. Complete this question by entering your answers in the tabs below. Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Debit Beginning balance Ending balance Work-in-Process Credit Debit Credit Beginning balance Ending balance Cost of Services Billed Service Overhead Control Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Applied Service Overhead Debit Credit Beginning balance Ending balance Ending balance Required A Required B
Transcribed Image Text:Queenston Professional Support (QPS) provides professional services (IT, payroll and billing, and so on) to firms requiring temporary help in those areas. QPS bills clients for its various services based on the hours its professionals spend. In January, QPS professionals billed 1,925 hours to clients and worked a total of 2,020 hours. (The difference includes time for training, preparing bids, and so on, which are considered administrative costs.) QPS bills clients at the rate of $365 per hour; labor cost for its professionals averaged $195 per hour in January. Overhead costs in January totaled $119,150. Overhead is applied to clients at $60 per labor-hour. In addition, QPS had $155,500 in marketing and administrative costs (not including the professional labor time as described). All transactions are on account. All services were billed. Transaction Description (a) Record labor cost (b) Record applied service overhead (c) Record cost of services billed (d) Record actual service overhead es Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an income statement for the company for January. Complete this question by entering your answers in the tabs below. Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Debit Beginning balance Ending balance Work-in-Process Credit Debit Credit Beginning balance Ending balance Cost of Services Billed Service Overhead Control Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Applied Service Overhead Debit Credit Beginning balance Ending balance Ending balance Required A Required B
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS