Don Lieberman and Associates, a CPA firm, uses job order costing to capture the

Question

Don Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerninq the three audit jobs conducted during November. Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is S50 per auditor hour. The Lynn job is the only incomplete job at the end of November. Actual overhead for the month was 511,000. Determine the cost of each job. Indicate the balance of the Service Contracts in Process account at the end of November. Balance in service contracts in process account Calculate the ending balance of the Operating Overhead account for November. Balance in operating overhead account

Explanation / Answer

a) Cost of each job

b) Balance in service contractor in process in November

Cost of Brian + Mike = 11,400 + 5,825 = 17,225

c) Operating over head

= 3,600 + 4,400 + 2,250

= 10,250

Particulars Lynn Brian Mike Direct materials 600 400 200 Direct labor 5,400 6,600 3,375 Over head 3,600 4,400 2,250 72 X 50 88 X 50 45 x 50 Total Cost 9,600 11,400 5,825

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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