The following are the job cost related accounts for the law firm of Cullumber Associates and their manufacturing equivalents: Law Firm Accounts Supplies Salaries and Wages Payable Operating Overhead Service Contracts in Process Cost of Completed Service Contracts Cost data for the month of March follow. 1. 2. 3. Manufacturing Firm Accounts Raw Materials Factory Wages Payable Manufacturing Overhead Work in Process Cast of Goods Sold Purchased supplies on account $2,400. Issued supplies $1,680 (60% direct and 40% indirect). Assigned labor costs based on time cards for the month which indicated labor costs of $89,600 (80% direct and 20% indirect). Operating overhead costs incurred for cash totaled $51,200.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
The following are the job cost related accounts for the law firm of Cullumber Associates and their manufacturing equivalents:
Law Firm Accounts
Supplies
Salaries and Wages Payable
Operating Overhead
Service Contracts in Process
Cost of Completed Service Contracts
Cost data for the month of March follow.
1. Purchased supplies on account $2,400.
2.
3.
4.
5.
6.
(a)
1.
Journalize the transactions for March. (List all debit entries before credit entries. Credit account titles are automatically indented when
amount is entered. Do not indent manually)
2.
No. Account Titles and Explanation
3.
5.
Issued supplies $1,680 (60% direct and 40% indirect).
Assigned labor costs based on time cards for the month which indicated labor costs of $89,600 (80% direct and 20%
indirect).
6.
Operating overhead costs incurred for cash totaled $51,200.
Operating overhead is applied at a rate of 90% of direct labor cost.
Work completed totaled $96,000.
Supplies
Accounts Payable
Manufacturing Firm Accounts
Raw Materials
Factory Wages Payable
Manufacturing Overhead
Work in Process
Cast of Goods Sold
Service Contracts In Process
Operating Overhead
eTextbook and Media
List of Accounts
Save for Later
Debit
2,400
1,680
Credit
Attempts: 0 of 1 used
2,400
Submit Answer
Transcribed Image Text:The following are the job cost related accounts for the law firm of Cullumber Associates and their manufacturing equivalents: Law Firm Accounts Supplies Salaries and Wages Payable Operating Overhead Service Contracts in Process Cost of Completed Service Contracts Cost data for the month of March follow. 1. Purchased supplies on account $2,400. 2. 3. 4. 5. 6. (a) 1. Journalize the transactions for March. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually) 2. No. Account Titles and Explanation 3. 5. Issued supplies $1,680 (60% direct and 40% indirect). Assigned labor costs based on time cards for the month which indicated labor costs of $89,600 (80% direct and 20% indirect). 6. Operating overhead costs incurred for cash totaled $51,200. Operating overhead is applied at a rate of 90% of direct labor cost. Work completed totaled $96,000. Supplies Accounts Payable Manufacturing Firm Accounts Raw Materials Factory Wages Payable Manufacturing Overhead Work in Process Cast of Goods Sold Service Contracts In Process Operating Overhead eTextbook and Media List of Accounts Save for Later Debit 2,400 1,680 Credit Attempts: 0 of 1 used 2,400 Submit Answer
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
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