Question

Order Cost Accounting for a Service Company e law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred uring July: July 3. Charged 560 hours of professional lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $24,200. 14. Charged 120 hours of professional time for the Obsidian trial at a rate of $270 per hour. 18. Received invoice from consultants Wadsley and Harden for $72,300 for expert testimony related to the Obsidian trial 27. Applied office overhead at a rate of $40 per professional hour charged to the Obsidian case. 31. Paid administrative and support salaries of $19,300 for the month. 31. Used office supplies for the month, $6,500. 31. Pald professional salaries of $182,400 for the month. 31. Billed Obsidian $274,500 for successful defense of the case. a. Provide the journal entries for each of these transactions. If an amount box does not require an entry, leave it blank. Work in Process July 3 Salaries Payable Work in Process y 10 Cash Work in Process July 14 Salaries Payable II II II July 18 Consultant Fees Payable Work in Process July 27 Office Overhead

Answer 1

Date	Genereal Journal	Debit	Credit
3-Jul	Work in progress	84000
	Salaries payable		84000
	560*150
10-Jul	Work in progress	24200
	Cash		24200
14-Jul	Work in progress	32400
	Salaries payable		32400
	120*270
18-Jul	Work in progress	72300
	Consultant fees payable		72300
27-Jul	Work in progress	27200
	Office Overhead		27200
	560+120*40
31-Jul	Office overhead	19300
	Cash		19300
31-Jul	Office overhead	6500
	Supplies		6500
31-Jul	Salaries payable	182400
	cash		182400
31-Jul	Accounts receivable	274500
	Fees earned		274500
31-Jul	Cost of services	240100
	Work in progress		240100