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 680 hours of professional (lawyer) time at a rate of $200 per hour to the Obsidian Co. breech of contract suit to prepare for the trial 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $18,300 14. Charged 130 hours of professional time for the Obsidian trial at a rate of $250 per hour 18. Received invoice from consultants Wadsley and Harden for $71,900 for expert testimony related to the Obsidian trial 27. Applied office overhead at a rate of $65 per professional hour charged to the Obsidian case 31. Paid administrative and support salaries of $37,400 for the month 31. Used office supplies for the month, $12,600 31. Paid professional salaries of $160,300 for the month 31. Billed Obsidian $355,000 for successful defense of the case a.Provide the journal entries for each of these transactions. July 3 July 10 July 14 July 18 July 27 July 31 Admin. sal. July 31 Supplies July 31 Prof. sal. July 31 Billed July 31 Cost b.How much office overhead is over- or underapplied? Enter your answer as a positive number. c.Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.

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...

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 680 hours of professional (lawyer) time at a rate of $200 per hour to the Obsidian Co. breech of contract suit to prepare for the trial
10.	Reimbursed travel costs to employees for depositions related to the Obsidian case, $18,300
14.	Charged 130 hours of professional time for the Obsidian trial at a rate of $250 per hour
18.	Received invoice from consultants Wadsley and Harden for $71,900 for expert testimony related to the Obsidian trial
27.	Applied office overhead at a rate of $65 per professional hour charged to the Obsidian case
31.	Paid administrative and support salaries of $37,400 for the month
31.	Used office supplies for the month, $12,600
31.	Paid professional salaries of $160,300 for the month
31.	Billed Obsidian $355,000 for successful defense of the case

a.Provide the journal entries for each of these transactions.

July 3

July 10

July 14

July 18

July 27

July 31 Admin. sal.

July 31 Supplies

July 31 Prof. sal.

July 31 Billed

July 31 Cost

b.How much office overhead is over- or underapplied? Enter your answer as a positive number.

c.Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.

Jun 08, 2022

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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...

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