The following are the job cost related accounts for the

Question
The following are the job cost related accounts for the law firm of Qing Associates and their manufacturing equivalents: Law Firm Accounts …………………………………………. Manufacturing Firm Accounts Supplies ……………………………………………………………. Raw Materials Salaries and Wages Payable ………………………….. Factory Wages Payable Operating Overhead ……………………………………….. Manufacturing Overhead Service Contracts in Process ………………………….. Work in Process Cost of Completed Service Contracts …………… Cost of Goods Sold Cost data for the month of March follow. 1. Purchased supplies on account ¥18,000. 2. Issued supplies ¥12,000 (60% direct and 40% indirect). 3. Assigned labor costs based on time cards for the month which indicated labor costs of ¥700,000 (80% direct and 20% indirect). 4. Operating overhead costs incurred for cash totaled ¥400,000. 5. Operating overhead is applied at a rate of 90% of direct labor cost. 6. Work completed totaled ¥750,000.

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