eBook 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 FV 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 $58,600 Take Off Airlines 17,600 Sleepy Tired Hotels 41,000 Tastee Beverages 25,200 Total $142,400 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 $39,800 $149,200 Take Off Airlines 17,000 131,300 Sleepy Tired Hotels 78,300 95,900 Tastee Beverages 89,100 71,600 Total $225,000 $448,000 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. Previous Next > Check My Work Total $225,000 $448.000 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 Work in Process 225.000 Salaries Payable 225.000 Feedback Check My Work . 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 Work in Process 400,000 Accounts Payable 448,000 Feasach Check My Wort 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 Previous Next) -9) eBook FOR Check My Work 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. Work in Process Agency Overhead Feedback Check My Work C. 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 d. Journalize the summary entry to record the completion of Vault Bank and Take Off Airlines for the month. d Cost of Services 76,200 X Work In Process Feedback Check wy Wort d. 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 Previous Next > Check My Work Sun Asunt for Grading
