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 50% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $82,600 Take Off Airlines 24,800 Sleepy Tired Hotels 57,800 Tastee Beverages 35,500 Total $200,700 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 $55,700 $214,100 Take Off Airlines 24,900 188,400 Sleepy Tired Hotels 109,500 137,600 Tastee Beverages 124,600 102,900 Total $314,700 $643,000 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. a. Work in Process 314,700 Salaries Payable 314,700 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 643,000 Accounts Payable 643,000 Feedback 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 321,500 Agency Overhead 321,500 Feedback 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. Cost of Services Work in Process