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Posted: January 15th, 2025

Exercise to capture the cost of audit jobs

Assessment Brief Exercise 16-12 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 November. Lynn Brian Mike Direct materials $700 $470 $260 Auditor labor costs $5,720 $6,850 $3,700 Auditor hours 75 89 48 Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $51 per auditor hour. The Lynn job is the only incomplete job at the end of November. Actual overhead for the month was $12,290. (a) Determine the cost of each job. Cost Lynn $ Brian $ 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 $

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