Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CH 1683 (Application II eBook Call Job Order Cost Accounting for a Service Company The Fly Company provides advertising services for clients across the nation.

image text in transcribed
image text in transcribed
CH 1683 (Application II eBook Call 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 located 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 10% of media purchases On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $54,000 Take Off Airlines 25,200 Sleepy Tired Hot 50.800 Taste Beverages 36,100 Total $204,100 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 Vaut Bank $55,000 5224.000 Take Of Aries 24,500 197,800 Sleepy Tired Hotels 108.200 144,500 Tasbee Beverages 123.000 107,900 To $310.800 5675.000 At the end of August, both the Vault Bank and Take Off Airlines campaigns were completed. The cost of completed campaigns are debited to the cost of services account. a. Journalize the summary try to record the direct labor costs for the month Work in Process Salaries Payable Feedback b. Journalize the summary entry to record the media purchases for the month. b. Work In Process Accounts Payable Feedback c. Journalize the summary entry to record the overhead applied for the month. C. Work In Process Agency Overhead Feedback 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 Feedback

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Paul Fischer, William Taylor

6th Edition

0538841265, 978-0538841269

More Books

Students also viewed these Accounting questions

Question

What are the characteristics of a critical audit matter?

Answered: 1 week ago

Question

Does your message use defamatory language?

Answered: 1 week ago