EX 16-7: The weekly time lickets indicate the following distribution of labor hours for three direct labor employees The direct labor rate earned per hour by the three employees is as follows: The process improvement category includes training, quality improvement, and other indirect tasks. a. Joumalize the entry to record the factory labor costs for the week. b. Assume that Jobs 301 and 302 were completed but not sold during the week and that Job 303 remained incomplete at the end of the week. How would the direct labor costs for all three jobs be reflected on the financial statements of the end of the week? EX 16-16, Jo OAOER 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, eoch for a different client. The Fly Company accumulates costs for eoch 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 od space). Overheod is allocated to each project as a percentage of media purchoses. The predetermined overheod rate is 65% of media purchases On August 1, the four advertising proiects had the following occumulated costs: During August, The Fly Company incurred the following direct labor and media purchose costs related to preparing odvertising for each of the four accountsi 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 occount. Directions Joumalize the summary entry to record each of the following for the month: - Direct labor costs - Media purchases - Overhead applied - Completion of Vault Bank and Take Off Airlines campoigns EX 16-7: The weekly time lickets indicate the following distribution of labor hours for three direct labor employees The direct labor rate earned per hour by the three employees is as follows: The process improvement category includes training, quality improvement, and other indirect tasks. a. Joumalize the entry to record the factory labor costs for the week. b. Assume that Jobs 301 and 302 were completed but not sold during the week and that Job 303 remained incomplete at the end of the week. How would the direct labor costs for all three jobs be reflected on the financial statements of the end of the week? EX 16-16, Jo OAOER 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, eoch for a different client. The Fly Company accumulates costs for eoch 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 od space). Overheod is allocated to each project as a percentage of media purchoses. The predetermined overheod rate is 65% of media purchases On August 1, the four advertising proiects had the following occumulated costs: During August, The Fly Company incurred the following direct labor and media purchose costs related to preparing odvertising for each of the four accountsi 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 occount. Directions Joumalize the summary entry to record each of the following for the month: - Direct labor costs - Media purchases - Overhead applied - Completion of Vault Bank and Take Off Airlines campoigns
