Exercise 15-12 Your answer is partially correct. Try again. Don Lieberman and As

Question

Exercise 15-12 Your answer is partially correct. Try again. 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 concerning the three audit jobs conducted during November Lynn Brian Mike Direct materials Auditor labor costs Auditor hours $690 $5,600 $490 $7,600 89 $310 $3,575 50 Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $56 per auditor hour. The Lynn job is the only incomplete job at the end of November. Actual overhead for the month was $12,400 (a) Determine the cost of each job Cost Lynn 10602 Brian 13704 Mike 6685 (b) Indicate the balance of the Service Contracts in Process account at the end of November Balance in service contracts in process account (c) Calculate the ending balance of the Operating Overhead account for November. Balance in operating overhead account 10602 304

Explanation / Answer

(a)Determine the cost of Each Job

“ Cost of Brian = $13,074 “

Lynn = $690 + $5600 + (77 x $56) = $10,602

Brian = $490 + $7600 + (89 x $56) = $13,074

Mike = $310 + $3575 + (50 x $56) = $6685

You have just made an amount entering mistake, Can you please replace $13,704 with $13,074

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