1.
2.
Entries for Factory Costs and Jobs Completed Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $1,710 of indirect materials and $20,710 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials Direct materials $8,280 $17,710 6,800 Direct labor Direct labor 3,500 Factory overhead 3,740 Factory overhead 1,925 Total $28,250 Total $13,705 Job 304 Job 303 Direct materials $25,270 Direct materials $5,100 Direct labor 7,500 Direct labor 1,000 Factory overhead Factory overhead Journalize the summary entry to record each of the following operations for January (one entry for each operation): a. Direct and indirect materials used. For a compound transaction, if an amount box does not require an entry, leave it blank. b. Direct and indirect labor used. For a compound transaction, if an amount box does not require an entry, leave it blank. c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). d. Completion of Jobs 301 and 302. Job order cost accounting for a service company The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 40% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $70,300 Take Off Airlines 21,100 Sleepy Tired Hotels 49,200 Tastee Beverages 30,200 Total $170,800 During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Direct Labor Media Purchases Vault Bank $50,800 $184,500 Take Off Airlines 22,700 162,300 Sleepy Tired Hotels 99,800 118,600 Tastee Beverages 113,500 88,600 Total $286,800 $554,000 At the end of August, both the Vault Bank and Take Off Airlines campaigns were completed. The costs of completed campaigns are debited to the cost of services account. a. Journalize the summary entry to record the direct labor costs for the month. b. Journalize the summary entry to record the media purchases for the month. b. c. Journalize the summary entry to record the overhead applied for the month. d. Journalize the summary entry to record the completion of Vault Bank and Take Off Airlines for the month. d
