Answer:
1. Dr Services in process inventory9,900
Cr Service salaries payable9,900
Dr Services in process inventory4,950
Cr Services overhead4,950
2. Dr Cost of services provided14,850
Cr Services in process inventory14,850
Explanation:
1.Preparation of journal entries to record direct labor andthe overhead applied.
Dr Services in process inventory9,900
Cr Service salaries payable9,900
[(5 × $500) + (12 × $200) + (100 × $50) = $9,900]
Dr Services in process inventory4,950
Cr Services overhead4,950
($9,900 x 50% = $4,950)
2.Preparation of the journal entry to record the cost of services provided.
Dr Cost of services provided14,850
Cr Services in process inventory14,850
($9,900+$4,950=14,850)
[(5 × $500) + (12 × $200) + (100 × $50) = $9,900]
+($9,900 x 50% = $4,950)
