E20-11 Shown below are the job cost related accounts for the law firm of Barnes,

Question

E20-11
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.

Purchased supplies on account $1,500.
Issued supplies $1,200 (60% direct and 40% indirect).
Time cards for the month indicated labor costs of $50,000 (80% direct and 20% indirect).
Operating overhead costs incurred for cash totaled $40,000.
Operating overhead is applied at a rate of 90% of direct attorney cost.
Work completed totaled $70,000.



Journalize the transactions for March. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.)

Trans. No. Account/Description Debit Credit
1.


2.



3.



4.

5.

6.

Explanation / Answer

1. Debit: Supplies 1500 Credit: Accounts payable 1500 2. Debit: Work in process 720 Debit: Operating overhead 480 Credit: Supplies 1200 3. Debit: Work in process 40,000 Debit: Operating Overhead 10,000 Credit salaries payable 50,000 4. Debit: operating overhead 40,000 Credit: Cash 40,000 5. Debit: Work in process 36,000 Credit: Operating overhead 36,000 6. Debit: Cost of work completed 70,000 Credit: Work in process 70,000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.