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 $