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Joseph & Jordan, a consulting firm, specializes in providing internal audit services for its clients. It bills the clients $159 per hour for its professional services; it costs the firm $84 per hour to cover the cost of its staff. To cover its MOH costs, the partners have always applied MOH costs to clients based on total direct labor hours. At the beginning of the year, they budgeted for 8,400 direct labor hours and $158,760 of MOH costs. In the current year, the firm's professional staff worked on three key client projects: All Ways, Inc., for 2,900 hours; My Way, Inc., for 2,400 hours; and High Way, Inc., for 4,600 hours. These clients were billed for this work by the end of the year. Naturally, there were other costs incurred to run the firm, including sales and marketing costs, which added up to $129,000 this year. Actual MOH costs for the year totaled $139,000.

Joseph & Jordan, a consulting firm, specializes in providing internal audit services for its clients. It bills the clients $159 per hour for its professional services; it costs the firm $84 per hour to cover the cost of its staff. To cover its MOH costs, the partners have always applied MOH costs to clients based on total direct labor hours. At the beginning of the year, they budgeted for 8,400 direct labor hours and $158,760 of MOH costs. In the current year, the firm's professional staff worked on three key client projects: All Ways, Inc., for 2,900 hours; My Way, Inc., for 2,400 hours; and High Way, Inc., for 4,600 hours. These clients were billed for this work by the end of the year. Naturally, there were other costs incurred to run the firm, including sales and marketing costs, which added up to $129,000 this year. Actual MOH costs for the year totaled $139,000.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 24CE: Inventory Costing: Average Cost Refer to the information for Filimonov Inc. and assume that the...
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Joseph & Jordan, a consulting firm, specializes in providing internal audit services for its clients. It bills the clients $159 per hour for its professional services; it costs the firm $84 per hour to cover the cost of its staff. To cover its MOH costs, the partners have always applied MOH costs to clients based on total direct labor hours. At the beginning of the year, they budgeted for 8,400 direct labor hours and $158,760 of MOH costs. In the current year, the firm's professional staff worked on three key client projects: All Ways, Inc., for 2,900 hours; My Way, Inc., for 2,400 hours; and High Way, Inc., for 4,600 hours. These clients were billed for this work by the end of the year. Naturally, there were other costs incurred to run the firm, including sales and marketing costs, which added up to $129,000 this year. Actual MOH costs for the year totaled $139,000.
Transcribed Image Text:Joseph & Jordan, a consulting firm, specializes in providing internal audit services for its clients. It bills the clients $159 per hour for its professional services; it costs the firm $84 per hour to cover the cost of its staff. To cover its MOH costs, the partners have always applied MOH costs to clients based on total direct labor hours. At the beginning of the year, they budgeted for 8,400 direct labor hours and $158,760 of MOH costs. In the current year, the firm's professional staff worked on three key client projects: All Ways, Inc., for 2,900 hours; My Way, Inc., for 2,400 hours; and High Way, Inc., for 4,600 hours. These clients were billed for this work by the end of the year. Naturally, there were other costs incurred to run the firm, including sales and marketing costs, which added up to $129,000 this year. Actual MOH costs for the year totaled $139,000.
Show the effects of the labor and MOH costs through T-accounts for the company's inventory and Cost of Sales accounts. (For balances beginning/ending in O select "Beg. Bal." and "End Bal." for the date and O for the amounts for the balance of the account.) WIP Inventory FG Inventory ✓
Transcribed Image Text:Show the effects of the labor and MOH costs through T-accounts for the company's inventory and Cost of Sales accounts. (For balances beginning/ending in O select "Beg. Bal." and "End Bal." for the date and O for the amounts for the balance of the account.) WIP Inventory FG Inventory ✓
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Determine the gross margin percentage and the profit margin percentage. (Round answers to 2 decimal places, e.g. 52.75%.) Gross margin percentage Profit margin percentage 35.28 % %
Transcribed Image Text:Determine the gross margin percentage and the profit margin percentage. (Round answers to 2 decimal places, e.g. 52.75%.) Gross margin percentage Profit margin percentage 35.28 % %
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