Exercise 2-12 Don Lieberman and Associates, a CPA firm, uses job order costing t
ID: 2608286 • Letter: E
Question
Exercise 2-12 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 Brian Mike $610 Direct materials Auditor labor Auditor hours $470 280 costs $6,0007, $3,575 49 74 91 Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $55 per auditor hour. The Lynn job is the only incomplete job at the end of November. Actual overhead for the month was $13,800. (a) Determine the cost of each job Cost Lynn Erian Mike (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 sExplanation / Answer
1. Cost of the jobs
The balance in service process a/c is 10680 i.e. lynn job
The total over head incurred is 13800
The total overhead applied. Is 11770
The balance in overhead a/c will be 2030 dr balance
Particulars lynn brian mike Direct material 610 470 280 Audit labour cost 6000 7600 3575 Overhead cost 4070 5005 2695 Total cost for jobs 10680 13075 6550Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.