Need help please Don Lieberman and Associates a CPA firm use

Need help please!!!

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 $710 $5,800 78 $430 $7,400 91 $250 $3,575 51 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 $14,000 (a) Determine the cost of each job Cost Lynn 10800 Brian 12935 Mike 6430 (b) Indicate the balance of the Service Contracts in Process account at the end of November Balance in service contracts in process account 10800 (c) Calculate the ending balance of the Operating Overhead account for November Balance in operating overhead account 12100

Solution

Solution a:

Solution b:

Balance in service contracts in process account = Cost of job Lynn = $10,800

Solution c:

Ending balance of operating overhead account = Overhead incurred - Overhead applied = $14,000 - $12,100 = $1,900 debit

Determination of Cost of Job
Particulars	Lynn	Brian	Mike
Direct materials	$710.00	$430.00	$250.00
Auditor labor cost	$5,800.00	$7,400.00	$3,575.00
Overhead applied	$4,290.00	$5,005.00	$2,805.00
Total Job Cost	$10,800.00	$12,835.00	$6,630.00