Shown below are the job cost related accounts for the law firm of Barnes, King, and Morton and their manufacturing equivalents:Law Firm Accounts
Manufacturing Firm Accounts
- Supplies Raw Materials
- Salaries Payable Factory Wages Payable
- Operating Overhead Manufacturing Overhead
- Work in Process Work in Process
- Cost of Completed Work Cost of Goods Sold
Cost data for the month of March follow.
- Purchased supplies on account $1,500.
- Issued supplies $1,200 (60% direct and 40% indirect).
- Time cards for the month indicated labor costs of $50,000 (80% direct and 20% indirect).
- Operating overhead costs incurred for cash totaled $40,000.
- Operating overhead is applied at a rate of 90% of direct attorney cost.
- Work completed totaled $70,000.
Determine the balance of the Work in Process account.