Riggs & Associates is a CPA firm located in Clinton, Kansas. The firm deals primarily in tax and audit work. For billing of major audit engagements, it uses cost-plus contracts, and its profit factor is 25 percent of total job cost. Costs are accumulated for three primary activities: preliminary analysis, field work, and report development. Current service overhead rates based on billable hours are preliminary analysis, $12 per hour; field work, $20 per hour; and report development, $16 per hour. Supplies are treated as direct materials and are traceable to each engagement. Audits for three clients— Fulcrum, Inc., Rainy Day Bakeries, and Our Place Restaurants—are currently in process. During March 20xx, costs related to these projects were as follows:

Required
1. Using the format shown in this chapter’s Review Problem, create the job order cost card for each of the three audit engagements.
2. Riggs & Associates will complete the audits of Rainy Day Bakeries and Our Place Restaurants by the end of March. What will the billing amount for each of those audit engagements be?
3. What is the March ending balance of Riggs & Associates’ Audit in Processaccount?

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Rainy Day Our Place Bakeries Restaurants Inc. Beginning Balances Preliminary analysis 1,160 Field work Report development Costs During March Preliminary analysis Supplies Labor: hours $2,670 1,980 1,020 $2,150 3,460 420 710 200 12 S 240 S 710 60 S1,200 2 S 430 10 200 dollars Field work Supplies Labor: hours S 450 $1,120 240 $4,800 $9,600 $ 890 230 $9,200 120 dollars Report development Supplies Labor: hours S 150 30 900 S 430 160 $4,800 S 390 140 $4,200 dollars