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 $70,800 Take Off Airlines 21,200 Sleepy Tired Hotels 49,600 Tastee Beverages 30,400 Total $172,000 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 $46,700 $179,500 Take Off Airlines 20,900 157,900 Sleepy Tired Hotels 91,900 115,300 Tastee Beverages 104,600 86,300 $264,100 $539,000 Total Previous Check My Work editor Submit Assignment for Grading Save and Exit eBook Bag Dashboard Tastee Beverages Total 30,400 $172,000 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 $179,500 Take Off Airlines Sleepy Tired Hotels $46,700 20,900 91,900 104,600 157,900 115,300 Tastee Beverages 86,300 Total $264,100 $539,000 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 8. b. Journalize the summary entry to record the media purchases for the month. b. Check My Work