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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 55% of media purchases On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $73,800 Take Off Airlines 22,100 Sleepy Tired Hotels 51,700 Tastee Beverages 31,700 Total $179,300 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 $50,400 $197.100 Take Off Airlines 22,500 173,500 Sleepy Tired Hotels 99,100 126,700 Tastee Beverages 112,900 94,700 Total $284,900 $592,000 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. If an amount bax does not require an entry, leave it blank 2549 Work in Process Previous 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 acco a. Journalize the summary entry to record the direct labor costs for the month. If an amount box does not require an entry, leave it blank. a. Work in Process 234.900 Salaries Payable al 284.900 Feedback Check My Won a. Increase the work in process for the direct costs and the applied overhead. Applied overhead should be based on media purchases, Transfer 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. If an amount box does not require an entry, leave it blank b. Work in Process 592,00 Accounts Payable 599,000 Fodtak Check My Wor b. Increase the work in process for the direct costs and the applied overhead. Applied overhead should be based on media purchases. Transfer the cost of completed jobs out of work in process and into the cost of services account c. Journalize the summary entry to record the overhead applied for the month. If an amount box does not require an entry, leave it blank Work in Process Agency Overhead . d. Journalize the summary entry to record the completion of Vault Bank and Take On Airlines for the month. If an amount box does not require an entry, leave it blank d. Cost of Services Work in Process Feedback Oh My W Partially correct Feedbac