This Website Has Been Moved to a New Link


E2-11 Jack, Bob, and Will

Price: $1.99

Shown below are the job cost related accounts for the law firm of Jack, Bob, and
Will and their manufacturing equivalents:

Law Firm Accounts
Manufacturing Firm Accounts
Supplies  Raw Materials 
Salaries and Wages Payable  Factory Wages Payable 
Operating Overhead  Manufacturing Overhead 
Service Contracts in Process  Work in Process 
Cost of Completed Service Contracts  Cost of Goods Sold 

Cost data for the month of March follow.
1. Purchased supplies on account $1,500.
2. Issued supplies $1,200 (60% direct and 40% indirect).
3. Assigned labor costs based on time cards for the month which indicated labor costs of
$60,000 (80% direct and 20% indirect).
4. Operating overhead costs incurred for cash totaled $40,000.
5. Operating overhead is applied at a rate of 90% of direct attorney cost.
6. Work completed totaled $75,000.

(a) Journalize the transactions for March. (Omit explanations.)
(b) Determine the balance of the Service Contracts in Process account. (Use a T-account.)

No comments:

Post a Comment