Job Order Costing for a Service Company The Fly Company provides advertising services for clients across the naton. The Fly Company is presently working on four projects, each for a different client. The Fy 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 medla purchases. The predetermined overhead rate is 50% of medis purchases. On August 1, the four advertising projects had the following accumulated costs: During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: At the end of August, both the Vault Bank and Take Off Airlines campaigns were completed. The costs of completed campaigns are debted ta the cost of services account. a. Journalize the summary entry to record the direct labor costs for the month. It an amount box does cot require an entry, leave it blank: 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. Feedback Toeok My Work a. Increase the work in process for the direct costs and the applied overhead. Applied overhead should be based on media purchases. Transfer the cost of completed jobs out of work-in-process and into the cost of services sccount. b. Joumalize the summary entry to record the media purchases for the month, If an amount box does not require an entry, leave if blank. Theck My Work b. Increase the work in process for the direct costs and the applied overhead. Applied overhead should be based on media purchases. Transfer the cost of completed jobs out of work-in-process and into the cost of services account. b. Increase the work in process for the direct costs and the applied overhead. Applied overhead should be based on media purchases. Transfer the cost of completed jobs out of work-in-process and into the cost of services account. Journalize the summary entry to record the overhead applied for the month. If an amount box does not require an entry, leave it biank. Feboback Tomak My Work c. Increase the work in process for the direct costs and the applied overhead. Applied overhead should be based on medla purchases. Transfer the cost of completed jobs out of work-in-process and into the cost of services account. 1. Joumalize the summary entry to record the completion of Vault Bank and Take orf Airlines for the month. If an amount box does not reouire an entry, ieave it atank. d