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. Thepredetermined overhead rateis 63% of media purchases.

On August 1, the four advertising projects had the following accumulated costs:

August 1 Balances

Vault Bank $260,700

Take Off Airlines 80,100

Sleepy Tired Hotels 212,900

Tastee Beverages106,800

Total$660,500

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 $180,100 $707,800

Take Off Airlines 84,000 631,700

Sleepy Tired Hotels 374,400 453,900

Tastee Beverages 427,800 343,300

Total $1,066,300 $2,136,700

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.

Required:

Journalize the four summary entries on August 31 to record each of the following for the month. Refer to the Chart of Accounts for exact wording of account titles.

Direct labor costs

Media purchases

Overhead applied

Completion of Vault Bank and Take Off Airlines campaigns