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	$88,900
Take Off Airlines	26,700
Sleepy Tired Hotels	62,200
Tastee Beverages	38,200
Total	$216,000

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	$60,900		$231,100
Take Off Airlines	27,200		203,300
Sleepy Tired Hotels	119,700		148,500
Tastee Beverages	136,200		111,100
Total	$344,000		$694,000

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.

Question Content Area

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.	Accounts PayableAgency OverheadCost of ServicesSalaries PayableWork in Process	- Select -	- Select -
	Accounts PayableCost of ServicesMaterialsSalaries PayableWork in Process	- Select -	- Select -

Question Content Area

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.	Accounts PayableAgency OverheadCost of ServicesSalaries PayableWork in Process	- Select -	- Select -
	Accounts PayableAgency OverheadCost of ServicesSalaries PayableWork in Process	- Select -	- Select -

Question Content Area

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.	Accounts PayableAgency OverheadCost of ServicesFinished GoodsWork in Process	- Select -	- Select -
	Accounts PayableAgency OverheadCost of ServicesFinished GoodsWork in Process	- Select -	- Select -

Question Content Area

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.	Accounts PayableAccounts ReceivableCost of ServicesMaterialsWork in Process	- Select -	- Select -
	Accounts PayableAccounts ReceivableAgency OverheadCost of ServicesWork in Process	- Select -	- Select -