50.1K

Verified Solution

Link Copied!

Exercise 20-11 (Part Level Submission) The following are the job cost related accounts for the law firm of Colaw Associates and their manufacturing equivalents: Law Firm Accounts Supplies Salaries and Wages Payable Operating Overhead Service Contracts in Process Cost of Completed Service Contracts Manufacturing Firm Accounts Raw Materials Factory Wages Payable Manufacturing Overhead Work in Process Cost of Goods Sold Cost data for the month of March follow 1. Purchased supplies on account $2,800 2. Issued supplies $2,900 (60% direct and 40% indirect) 3. Assigned labor costs based on time cards for the month which indicated labor costs of $72,800 (80% direct and 20% indirect). 4. Operating overhead costs incurred for cash totaled $44,400 5. Operating overhead is applied at a rate of 90% of direct labor cost. 6. Work completed totaled $85,500 Your answer is correct. ournalize the transactions for March. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation 1. Supplies Debit Credit 2800 Accounts Payable 2800 2. Service Contracts in Process 1740 Operating Overhead 1160 Supplies 2900 3. Service Contracts in Process 58240 Operating Overhead 14560 Service Salaries and Wages 72800 4. Operating Overhead 44400 Cash 44400 5. Service Contracts in Process 52416 Operating Overhead 52416 6. Cost of Completed Service Contracts 85500 Service Contracts in Process 85500 Click if you would like to Show Work for this question: Open Show Worlk SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXTLINK TO TEXT LINK TO TEXT (b) Your answer is incorrect. Try again. Determine the balance of the Service Contracts in Process account. Balance of Service Contracts in Process account

Answer & Explanation Solved by verified expert

See Answer