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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

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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 $79,900 Take Off Airlines 24,000 Sleepy Tired Hotels 55,900 Taste Beverages 34,400 Total $194,200 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 $53,300 $206,100 Take Off Airlines 23,800 181,400 Sleepy Tired Hotels 104,800 132.500 Tastee Beverages 119,300 99,000 Total $301,200 5619,000 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 box does not require an entry leave it blank Work in Process Salaries Payable Direct Labor Media Purchases Vault Bank $53,300 $206,100 Take Off Airlines 23,800 181,400 Sleepy Tired Hotels 104,800 132,500 Tastee Beverages 119,300 99,000 Total $301,200 $619,000 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 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 Salaries Payable 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 Accounts Payable 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 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 d. Cost of Services Work in Process

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