=+E10-22 Job order cost accounting entries for a service business Obj 6

d. Cost of Services Completed, $609,800 Tec Trends Inc. provides advertising services for clients across the nation. Tec Trends is pres¬

ently working on four projects, each for a different client. Tec Trends accumulates costs for each account (client) on the basis ofboth 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 ofmedia purchases. The predetermined overhead rate is 40% ofmedia purchases.

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