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 med 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 $85,700 Take Off Airlines Sleepy Tired Hotels 25,700 60,000 36,900 Tastee Beverages Total $208,300 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 $61,000 27,200 $226,100 198,900 Take Off Airlines Sleepy Tired Hotels 145,300 Tastee Beverages 119,900 136,400 $344,500 108,700 Total $679,000 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. Sleepy Tired Hotels 145,300 119,900 136,400 Tastee Beverages 108,700 Total $344,500 $679,000 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. 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. 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. 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. d