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guapka [62]
2 years ago
11

The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The followi

ng transactions occurred during July:
Jul. 3 Charged 175 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, $12,500.
14 Charged 260 hours of professional time for the Obsidian trial at a rate of $185 per hour.
18 Received invoice from consultants Wadsley and Harden for $30,000 for expert testimony related to the Obsidian trial.
27 Applied office overhead at a rate of $62 per professional hour charged to the Obsidian case.
31 Paid administrative and support salaries of $28,500 for the month.
31 Used office supplies for the month, $4,000.
31 Paid professional salaries of $74,350 for the month.
31 Billed Obsidian $172,500 for successful defense of the case.
Required:
A. Provide the journal entries for each of these transactions.
B. How much office overhead is over- or underapplied?
C. Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.
Business
1 answer:
SVEN [57.7K]2 years ago
5 0

Answer:

3-July

Dr Work in process 25,500

Cr Salaries payable 25,500

10-Jul

Dr Work in process 12,500

Cr Cash 12,500

14-Jul

Dr Work in process 48,100

Cr Salaries payable 48,100

18-Jul

Dr Work in process 30,000

Cr Consultant fees payable 30,000

27-Jul

Dr Work in process 26,660

Cr Office overhead 26,660

31-Jul

Dr Office overhead 28,500

Cr Cash 28,500

31-Jul

Dr office overhead 4,000

Cr Supplies 4,000

31-Jul

Dr Salaries payable 74,350

Cr Cash 74,350

31-Jul

Dr Accounts receivable 172,500

Cr Fees earned 172,500

31-Jul

Dr Cost of services 142,760

Cr Work in process 142,760

b. $5,840 Over applied

c. $35,580

Explanation:

Preparation of the journal entries for each of these transactions.

3-Jul

Dr Work in process 25,500

Cr Salaries payable 25,500

(170 hours ×150 per hour)

10-Jul

Dr Work in process 12,500

Cr Cash 12,500

14-Jul

Dr Work in process 48,100

Cr Salaries payable 48,100

(260 hours ×185 per hour)

18-Jul

Dr Work in process 30,000

Cr Consultant fees payable 30,000

27-Jul

Dr Work in process 26,660

Cr Office overhead 26,660

(170 hours +260 hours)*62

31-Jul

Dr Office overhead 28,500

Cr Cash 28,500

31-Jul

Dr office overhead 4,000

Cr Supplies 4,000

31-Jul

Dr Salaries payable 74,350

Cr Cash 74,350

31-Jul

Dr Accounts receivable 172,500

Cr Fees earned 172,500

31-Jul

Dr Cost of services 142,760

(25,500+12,500+48,100+30,000+26,660)

Cr Work in process 142,760

b. Calculation for the office overhead

Office overhead =(28,500+4,000)-26,660

Office overhead=32,500-26,660

Office overhead=$5,840 Over applied

Therefore the office overhead is $5,840 over applied w

C. Calculation to Determine the gross profit

Fees earned 172,500

Less Cost of services (136,920)

(142,760-5,840)

Gross profit $35,580

Therefore the gross profit will be $35,580

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The supply of loanable funds is $50 billion. Thus, option c is correct.

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1 year ago
The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine ads to run during the next quarter.
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Answer: The LP model is given as :

max: 1.180( 420000 A + 500000 B )

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(b.) 7000 A ≤ 70000

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Explanation:

Let us assume;

A be the no. of T.V spots

B be the no. of magazine spots

Given:

(a.) Mountain Mist earns a profit margin of $1.80 on each case of soda that it sells.

(b.) Each TV spot costs $7000 and is expected to increase sales by 420,000 cases.

(c.) Each magazine ad costs $2500 and is expected to increase sales by 500,000 cases.

∴ The objective function of this model will be given as :

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(d.) A total of $100,000 may be spent on TV and magazine ads combined.

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Answer:

A) 8 percent.

Explanation:

Coupon rate refers to the expected periodic earnings of a bond until its maturity. The coupon rate is expressed as a percentage of the par value or the face value of the bond. It is similar to the interest rate for other investments option.  A bond's coupon rate is, therefore, its interest rate.

A bond coupon rate represents its yearly earnings. However, most bonds will pay the interest twice per year. The bond issuer pays the bondholder regular and fixed interest until the bond matures. The coupon rate determines the bond's profitability. A bond with a higher coupon rate is more attractive to investors.

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3 years ago
A supermarket sells kiwis at a price of 33 cents each. Then it starts selling the same product at the price of 3 kiwis for 99 ce
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Answer:

C. Anchoring

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Answer:

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