Job Order Cost Accounting for a Service Company The Fly Company provides advertising services for dients across the nation. The Fly Company is presently working on four projects, each for a different client. The Hy Company accumulates costs for each account (dient) 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 60% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $75,000 Take Off Airlines 22,500 Sleepy Tired Hotels 52,500 Tastee Beverages 32,300 Total $182,300 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 $51,000 $195,500 Take Off Airlines 22,800 172,000 Sleepy Tired Hotels 100,200 125,600 Tastee Beverages 114,000 93,900 $288,000 Total $587,000 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 ator=&inprogress=false 1 On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $75,000 Take Off Airlines 22,500 Sleepy Tired Hotels 52,500 Tastee Beverages 32,300 Total $182,300 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 $51,000 $195,500 Take Off Airlines 22,800 172,000 Sleepy Tired Hotels 100,200 125,600 Tastee Beverages 114,000 93,900 Total $288,000 $587,000 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 service 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. Work in Process 200.000 Salaries Payable 3. 288.000 Check My Wor Previous All work saved Save and Sub Assign BI hp ogress=false 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 587,000 Accounts Payable 587.000 Feedback Check My Work 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. c. Work in Process Agency Overhead Feedback Check My Wor d. Journalize the summary entry to record the completion of Vault Bank and Take Off Airlines for the month. If an amount box does not require an entry, leave it blank. Cost of Services Work in Process Check My Work Previous Next All work saved Save Subient for Grading BI a do 11:20 PM 7/20/2020
