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    Job Cost Journal Entries and T-Account

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    20-11

    Shown below are the job cost related accounts for the law firm of Barnes, King, and Morton and their manufacturing equivalents:
    Law Firm Accounts Manufacturing Firm Accounts
    Supplies Raw Materials
    Salaries Payable Factory Wages Payable
    Operating Overhead Manufacturing Overhead
    Work in Process Work in Process
    Cost of Completed Work 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.

    Journalize the transactions for March. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
    Trans. No. Account/Description Debit Credit
    1.

    2.

    3.

    4.

    5.

    6.

    Determine the balance of the Work in Process account. Use a T account. (List amounts in order of the transaction numbers above. If an amount should be blank, enter a zero. All boxes must be filled to be correct.)
    Work in Process

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    *** Please see the attached document with answers and explanations. ***

    I have copied and pasted it as well but I think the attachment is more clear. Best of luck!

    =========================
    20-11

    Shown below are the job cost related accounts for the law firm of Barnes, King, and Morton and their manufacturing equivalents:
    Law Firm Accounts Manufacturing Firm Accounts
    Supplies Raw Materials
    Salaries Payable Factory Wages Payable
    Operating Overhead Manufacturing Overhead
    Work in Process Work in Process
    Cost of Completed Work 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.
    Explanations are below the answers.

    Journalize the transactions for March. (For ...

    Solution Summary

    This question requires the journal entries and T-account computations for a given set of job-related costs that were incurred in a month. The focus is on cost accounting and the flow of costs.

    $2.19

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