Shown below are the job cost related accounts for the law firm of Han, Kung, and Ming and their manufacturing company equivalents:
|
Law Firm Accounts |
Manufacturing Company 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. Time cards for the month indicated labor costs of $50,000 (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 $70,000.
Instructions
(a) Journalize the transactions for March. Omit explanations.
(b) Determine the balance of the Work in Process account. Use a T account.