Job Order Cost Accounting for a Service CompanyThe 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 Companyaccumulates costs for each account (client) on the başis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel andmedia 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 mediapurchases.On August 1, the four advertising projects had the following accumulated costs:August 1 BalancesVault Bank$68,700Take Off Airlines20,600Sleepy Tired Hotels48,100Tastee Beverages29,500Total$166,900During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts:Direct LaborMedia PurchasesVault Bank$46,100$173,800Take Off Airlines20,600152,900Sleepy Tired Hotels90,600111,700Tastee Beverages103,10083,600Total$260,400$522,000At 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 anentry, leave it blank.a. Work in ProcessSalaries Payableb. Journalize the summary entry to record the media purchases for the month. If an amount box does not require anentry, leave it blank.b. Work in ProcessAccounts Payablec. Journalize the summary entry to record the overhead applied for the month. If an amount box does not require anentry, leave it blank.c. Work in ProcessAgency Overheadd. Journalize the summary entry to record the completion of Vault Bank and Take Off Airlines for the month. If anamount box does not require an entry, leave it blank.d. Cost of ServicesWork in Process

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Description: Job Order Cost Accounting for a Service CompanyThe 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 Companyaccumulates costs for each

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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 Compa 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 a 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 $68,700 Take Off Airlines 20,600 Sleepy Tired Hotels 48,100 Tastee Beverages 29,500 Total $166,900 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 $46,100 $173,800

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 Compa 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 a 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 $68,700 Take Off Airlines 20,600 Sleepy Tired Hotels 48,100 Tastee Beverages 29,500 Total $166,900 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 $46,100 $173,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 45% of media purchases. On August 1, the four advertising projects had the following accumulated costs: Vault Bank Take Off Airlines Sleepy Tired Hotels Tastee Beverages Total During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Vault Bank Take Off Airlines Sleepy Tired Hotels Tastee Beverages Total a. b. pur req b. ( 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. C. August 1 Balances $81,400 24,400 57,000 35,000 $197,800 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. app ani c. C d. of V ami d. ( Direct Labor $55,300…