Don Lieberman and Associates, a CPA firm, uses job order costing to capture costs of its audit jobs. There were no audit job in process at the beginning of November Listed below are data concerning the three audit jods conducted during November.
Overhead costs are applied to jobs on the basis of auditor hours, and the predeterminer overhead rate is $5 per auditor hour. The Lyn job is the only incomplete job at the end of November. Actual overhead for the month was $11,000.
Instructions
- Determine the cost of each job.
- Indicate the balance of the Service Contracts in Process account at the end of November.
- Calculate the ending balanace of the Operating Overhead account for November.
Solution
