Hints: This is a little different than what we did in lecture as this is for a service company, not a manufacturer. Use the following accounts to make your entries and answer (b)

• Cash
• Supplies
• Accounts Payable
• Service Salaries and Wages Payable
• Service Contracts in Process (Replaces the Work In Process Account)
• Operating Overhead ( Replaces Manufacturing Overhead)
• Cost of Completed Service Contracts (COGS) This is related to the last transaction

E15-11 The following are the job cost related accounts for the law firm of Colaw Associ- ates and their manufacturing equivalents: Law Firm Accounts Supplies Salaries and Wages Payable Operating Overhead Service Contracts in Process Cost of Completed Service Contracts Manufacturing Firm Accounts Raw Materials Factory Wages Payable Manufacturing Overhead Work in Process Cost of Goods Sold Cost data for the month of March follow. 1. Purchased supplies on account $1,800. 2. Issued supplies $1,200 (60% direct and 40% indirect). 3. Assigned labor costs based on time cards for the month which indicated labor costs of $70,000 (80% direct and 20% indirect). 4. Operating overhead costs incurred for cash totaled $40,000. 5. Operating overhead is applied at a rate of 90% of direct labor cost. 6. Work completed totaled $75,000. Instructions (a) Journalize the transactions for March. (Omit explanations.) (b) Determine the balance of the Service Contracts in Process account. (Use a T-account.)