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 Durches con time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate 40% of media purchases On Mogust 1, the four advertising projects had the following accumulated costs August 1 Balances Vault 572,900 Take Or itines 21,900 Sleepy Tied Hotels 51,000 Tistee Beverages 31,300 $177,100 During August, thely Company incorred the following direct labor and medio purchase costs related to preparing advertising for each of the four counts Direct Labor Media Purchases Varu Bank 351,000 $116,00 Take of Armes 23,200 104,100 Sleepy Ted Hot 102,000 119,000 The Bevere 116.000 9.00 Total $70,100 $500,000 At the end out both the Vaal Dantas orams were completed. The cost of completed compared to the content a on the surrently to record the labor costs for the month Iran amount or does not an entry leave it bank 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 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 mediu purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rote is 40% of media purchases On August 1, the four advertising projects had the following accumulated costs August 1 Balances Vault Blank $72,500 Take Off Adines 21.900 Sleepy Tied Hot I 51,000 Tostee Beverages 31.300 $177,100 During gust, The Fly Company incurred the following direct labor and media purchase costs related to propating advertising for each of the four accounts Direct Labor Vault Bank Take Off Airlines Sleepy Tied Hotels Taste Beverages Total $51,00 23,200 102,000 116,000 5293,100 Media Purchase $16,500 164,100 119,00 89,600 $560,000 At the end of both the Vault Bank and Toke Off Airlines campaigns were completed. The cost of completed compagnon debuted to the cit of services account a Journal the summary entry to record the direct labor costs for the month an amount box does not require an entry leave it back
