View the step-by-step solution to:

value:00 points For August, Royal Consulting and Mediation Practice (RCMP) worked 900 hours for Alberta Company and 2,100 hours for Ontario...

4.value:
5.00 points
For August, Royal Consulting and Mediation Practice (RCMP) worked 900 hours for Alberta Company and 2,100 hours for Ontario Corporation. RCMP bills clients at the rate of $300 per hour; labor cost for its consulting staff is $150 per hour. The total number of hours worked in September was 3,000, and overhead costs were $45,000. Overhead is applied to clients at $18 per labor-hour. In addition, RCMP had $180,000 in marketing and administrative costs. All transactions are on account. All services were billed.

Required:
(a)
Show labor and overhead cost flows through T-accounts. (Record the transactions in the given order. Omit the "$" sign in your response.)

Wages Payable

Transfer to Work in Progress

Service Overhead Control

Actual Transfer to Cost of
Services Billed

Work in Process

Transfer from Wages
Payable Transfer to Cost of
Services Billed
Overhead Charged

Cost of Services Billed

Transfer from Work in
Process Over applied

Applied Service O.H.

Transfer to Cost of
Services Billed Applied

(b)
Prepare an income statement for the company for August. (Input all amounts as positive values. Omit the "$" sign in your response.)

Royal Consulting and Mediation Practice
Income Statement
For the Month Ended August 31
$
$


$


$

check my workeBook Linkreferences
Background image of page 1

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question