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oborar cost accounting for a service company The Fly Company provides advertising Services for dients across the nation. The fly Comowy la present working on four projects, each for a different dent. The company come coutor each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs indude the charged time of professional prel and media ouches (wie and als) Overhead is allocated to each project as a percentage of media purchases. The pretteleed verhead pater is 60 media purchases On August 1, the tour advertising projects had the following accumulated cost August 1 Balances Vault Bank $63.100 Take Off Airlines 18.000 Sleepy Tired Hotels Tastee Beverages 44,200 27.100 5153.500 During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four account Direct Labor Media Purchases Vault Bank $163,850 $42,200 19:300 146.200 Take Off Airlines 85.000 105,000 Sleepy Tired Hotels 78.700 Tastee Beverages 96,700 $244,200 $499.000 Total At the end of August, both the vault Bank and Take Offices compaions were completed. The costs of completed campaign we debited to the cost of services Cont. a. Journalive the summary entry to record the direct labor costs for the month Work in Process Salaries Payable a. F Check My Worx a. Increase the work in process for the direct costs and the applied overhead. Applied overhead should be based on media purchases Trander the cost of completed jobs out of work-in- process and into the cost of services account. b. Journalize the summary entry to record the media purchases for the month Work in Process b. Accounts Payable Feedback Check My W b. Increase the work in process for the direct costs and the applied overhead. Applied overhead should be based on media purchases. Traster the cost of completed jobs out of money process and into the cost of services account. Previous C. Journalize the summary entry to record the overhead applied for the month Work in Process Agency Overhead Fecha C. Increase the work in process for the direct costs and the cold overheat. Aliud overhead should be based on media purchases, and the cout of comitud jobu process and into the cost of services account. d. Journalize the summary entry to record the completion of vault Bank and Take Off Airlines for the month d. Cost of Services Work in Process