Shown below are the job cost related accounts for the law firm of Jack, Bob, and Will and their manufacturing equivalents:
|
Law Finn Accounts |
Manufacturing Finn 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.
- Purchased supplies on account $1,500.
- Issued supplies $1,200 (60% direct and 40% indirect).
- Assigned labor costs based on time cards for the month which indicated labor costs of $60,000 (80% direct and 20% indirect).
- Operating overhead costs incurred for cash totaled $40,000.
- Operating overhead is applied at a rate of 90% of direct attorney cost.
- Work completed totaled $75,000.
Instructions
(a)Journalize the transactions for March. (Omit explanations.)
(b)Determine the balance of the Service Contracts in Process account. (Use a T-account.)