Kalogrides & McMillan CPAs incurred the following costs in performing audits during September 2010. The firm uses a Work in Process Inventory account for audit engagement costs and records overhead in fixed and variable overhead accounts.

a. Prepare journal entries for each of the following transactions:

• Used $5,000 of previously purchased supplies on audit engagements.

• Paid $8,000 of partner travel expenses to an accounting conference.

• Recorded $6,500 of depreciation on laptops used in audits.

• Recorded $1,800,000 of annual depreciation on the Kalogrides & McMillan Building, located in downtown New York; 65 percent of the space is used to house audit personnel.

• Accrued audit partner salaries, $200,000.

• Accrued remaining audit staff salaries, $257,900.

• Paid credit card charges for travel costs for client engagements, $19,400.

• One month’s prepaid insurance and property taxes expired on the downtown building, $17,300.

• Accrued $3,400 of office assistant wages; the office assistant works only for the audit partners and staff.

• Paid all accrued salaries and wages for the month.

b. Determine the cost of audit services rendered for September 2010.