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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 Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an Income statement for the company for January. Answer is complete but not entirely correct. 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 Debit Beginning balance (c) Closing Ending balance Debit Beginning balance Closing Ending balance Cost of Services Billed 490,875 3.650 494,525 Work-in-Process Credit Debit Credit Beginning balance 393.900 393,900 (a) (a) × (b) 375,375 115,500 490,875 (c) Ending balance 0 Applied Service Overhead Service Overhead Control Credit Debit Credit Beginning balance. Credit 115,500 115.500 (b) 0 (d) 119,150 119,150 Closing Ending balance 0

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 Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an Income statement for the company for January. Answer is complete but not entirely correct. 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 Debit Beginning balance (c) Closing Ending balance Debit Beginning balance Closing Ending balance Cost of Services Billed 490,875 3.650 494,525 Work-in-Process Credit Debit Credit Beginning balance 393.900 393,900 (a) (a) × (b) 375,375 115,500 490,875 (c) Ending balance 0 Applied Service Overhead Service Overhead Control Credit Debit Credit Beginning balance. Credit 115,500 115.500 (b) 0 (d) 119,150 119,150 Closing Ending balance 0

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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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 Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an Income statement for the company for January. Answer is complete but not entirely correct. 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 Debit Beginning balance (c) Closing Ending balance Debit Beginning balance Closing Ending balance Cost of Services Billed 490,875 3.650 494,525 Work-in-Process Credit Debit Credit Beginning balance 393.900 393,900 (a) (a) × (b) 375,375 115,500 490,875 (c) Ending balance 0 Applied Service Overhead Service Overhead Control Credit Debit Credit Beginning balance. Credit 115,500 115.500 (b) 0 (d) 119,150 119,150 Closing Ending balance 0 <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 Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an Income statement for the company for January. Answer is complete but not entirely correct. 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 Debit Beginning balance (c) Closing Ending balance Debit Beginning balance Closing Ending balance Cost of Services Billed 490,875 3.650 494,525 Work-in-Process Credit Debit Credit Beginning balance 393.900 393,900 (a) (a) × (b) 375,375 115,500 490,875 (c) Ending balance 0 Applied Service Overhead Service Overhead Control Credit Debit Credit Beginning balance. Credit 115,500 115.500 (b) 0 (d) 119,150 119,150 Closing Ending balance 0 <Required A Required B
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