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.)
Determine the balance of the Work in Process account. Use a T account. (List amounts in order of the transaction numbers above. If an amount should be blank, enter a zero. All boxes must be filled to be correct.)