Question

7062-40c-899-259407180866/question cer 15 Homework Question 4 of 5 SHOWROTY Current Attempt in Progress The following are the job cost related accounts for the law firm of Colaw Associates and their manufacturing equivalent 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 2. 3. Purchased supplies on account $3.000 Issued supplies $2,000 (60% direct and 40% indirect). Assigned labor costs based on time cards for the month which indicated labor costs of $77.600(80% direct and 20% indirect) Operating overhead costs incurred for cash totaled $46,700. Operating overhead is applied at a rate of 90% of direct labor cost. Work completed totaled $83,600. 4 5. 6. (a) c G Search or type URL $ & 2 3 4 5 6 7 8 0 W E R T Y А S D F G H к

Answer 1

No.	Account Titles and Explanation	Debit	Credit
1	Supplies	$ 3,000
	Accounts payable		$ 3,000
	[To record purchase of supplies on account]
2	Service Contracts in Process [2000 x 60%]	$ 1,200
	Supplies		$ 1,200
	[To record issuance of direct supplies]
	Operating Overhead [2000 x 40%]	$ 800
	Supplies		$ 800
	[To record issaunce of indirect supplies]
3	Service Contracts in Process [77600 x 80%]	$ 62,080
	Salaries and Wages payable		$ 62,080
	[To record assigned direct labor costs]
	Operating Overhead [77600 x 20%]	$ 15,520
	Salaries and Wages payable		$ 15,520
	[To record assigned indirect labor costs]
4	Operating Overhead	$ 46,700
	Cash		$ 46,700
	[To record operating Overhead]
5	Service Contracts in Process [62,080 x 90%]	$ 55,872
	Manufacturing overhead		$ 55,872
	[To record applied Operating overhead]
6	Cost of completed service contracts	$ 83,600
	Service Contracts in Process		$ 83,600
	[To record total work completed]