36. Calculating the Cost of Jobs and Making Journal Entries for a Service Company. Sampson &...

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36. Calculating the Cost of Jobs and Making Journal Entries for a Service Company. Sampson & Associates provides accounting services. It began jobs 1 through 3 in the first week of January. The following transactions occurred that week. 1. Purchased supplies on account totaling $1,500 2. Used supplies totaling $800 for various jobs 3. Processed timesheets showing the following: Job 1, direct labor (50 hours) Job 2, direct labor (60 hours) Job 3, direct labor (10 hours) Indirect labor Total $ 1,500 1,700 400 900 $ 4,500 4. Applied overhead using a predetermined rate of $10 per direct labor hour. 5. Completed job 1 and billed the customer $3,000. (Hint: Two entries are required-one for the cost of services and another for revenue.) Required: a. Calculate the costs incurred in January for each of the three jobs. b. Make the appropriate journal entry for each item described previously. Assume all payments will be made next month. (Hint: Use Figure 2.7 as a guide.) c. How much gross profit did Sampson & Associates earn from job 1? 36. Calculating the Cost of Jobs and Making Journal Entries for a Service Company. Sampson & Associates provides accounting services. It began jobs 1 through 3 in the first week of January. The following transactions occurred that week. 1. Purchased supplies on account totaling $1,500 2. Used supplies totaling $800 for various jobs 3. Processed timesheets showing the following: Job 1, direct labor (50 hours) Job 2, direct labor (60 hours) Job 3, direct labor (10 hours) Indirect labor Total $ 1,500 1,700 400 900 $ 4,500 4. Applied overhead using a predetermined rate of $10 per direct labor hour. 5. Completed job 1 and billed the customer $3,000. (Hint: Two entries are required-one for the cost of services and another for revenue.) Required: a. Calculate the costs incurred in January for each of the three jobs. b. Make the appropriate journal entry for each item described previously. Assume all payments will be made next month. (Hint: Use Figure 2.7 as a guide.) c. How much gross profit did Sampson & Associates earn from job 1?