Question

costs of its audit jobs. There were no audit jobs in process at the beginning of November. Lynn S600 $5,400 Don Lieberman and Associates, a CPA firm, uses job order costing to capture the List ted below are data concerning the three audit jobs conducted during November Mike Direct materials Auditor labor costs Auditor hours Brian $400 $6,600 $200 $3,375 45 72 redetermined b at the end Overhead costs are applied to jobs on the basis of auditor hours, and the p overhead rate is $50 per auditor hour. The Lynn job is the only incomplete jo of November Actual overhead for the month was $11,000: Instructions (a) Determine the cost of each job. (b) Indicate the balance of the Service Contracts in Process account at the end of Novem ber (c) Calculate the ending balance of the Operating Overhead account for November.

Answer 1