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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 ...
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.