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 $69,400 Take Off Airlines 20,800 Sleepy Tired Hotels 48,600 Tastee Beverages 29,800 Total $168,600 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 $49,100 $176,800 Take Off Airlines 21,900 155,600 Sleepy Tired Hotels 96,600 113,600 Tastee Beverages 110,000 85,000 Total $277,600 $531,000 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 fill in the blank e98983097077fa2_2 fill in the blank e98983097077fa2_3 Salaries Payable fill in the blank e98983097077fa2_5 fill in the blank e98983097077fa2_6 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 fill in the blank 5d9f3e0a205607a_2 fill in the blank 5d9f3e0a205607a_3 Accounts Payable fill in the blank 5d9f3e0a205607a_5 fill in the blank 5d9f3e0a205607a_6 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 fill in the blank c874f1f86000fc4_2 fill in the blank c874f1f86000fc4_3 Agency Overhead fill in the blank c874f1f86000fc4_5 fill in the blank c874f1f86000fc4_6 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

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 $69,400 Take Off Airlines 20,800 Sleepy Tired Hotels 48,600 Tastee Beverages 29,800 Total $168,600 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 $49,100 $176,800 Take Off Airlines 21,900 155,600 Sleepy Tired Hotels 96,600 113,600 Tastee Beverages 110,000 85,000 Total $277,600 $531,000 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 fill in the blank e98983097077fa2_2 fill in the blank e98983097077fa2_3 Salaries Payable fill in the blank e98983097077fa2_5 fill in the blank e98983097077fa2_6 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 fill in the blank 5d9f3e0a205607a_2 fill in the blank 5d9f3e0a205607a_3 Accounts Payable fill in the blank 5d9f3e0a205607a_5 fill in the blank 5d9f3e0a205607a_6 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 fill in the blank c874f1f86000fc4_2 fill in the blank c874f1f86000fc4_3 Agency Overhead fill in the blank c874f1f86000fc4_5 fill in the blank c874f1f86000fc4_6 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

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	$69,400
Take Off Airlines	20,800
Sleepy Tired Hotels	48,600
Tastee Beverages	29,800
Total	$168,600

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	$49,100		$176,800
Take Off Airlines	21,900		155,600
Sleepy Tired Hotels	96,600		113,600
Tastee Beverages	110,000		85,000
Total	$277,600		$531,000

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	fill in the blank e98983097077fa2_2	fill in the blank e98983097077fa2_3
	Salaries Payable	fill in the blank e98983097077fa2_5	fill in the blank e98983097077fa2_6

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	fill in the blank 5d9f3e0a205607a_2	fill in the blank 5d9f3e0a205607a_3
	Accounts Payable	fill in the blank 5d9f3e0a205607a_5	fill in the blank 5d9f3e0a205607a_6

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	fill in the blank c874f1f86000fc4_2	fill in the blank c874f1f86000fc4_3
	Agency Overhead	fill in the blank c874f1f86000fc4_5	fill in the blank c874f1f86000fc4_6

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

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here