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 55% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $87,600 Take Off Airlines 26,300 Sleepy Tired Hotels 61,300 Tastee Beverages 37,700 $212,900 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: Direct Labor Media Purchases $61,600 $233,400 Vault Bank 27,500 205,400 Take Off Airlines 121,000 150,000 Sleepy Tired Hotels 137,700 112,200 Tastee Beverages $701,000 $347,800 Total 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 accoun 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. Work in Process Previous Next
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 55% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $87,600 Take Off Airlines 26,300 Sleepy Tired Hotels 61,300 Tastee Beverages 37,700 $212,900 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: Direct Labor Media Purchases $61,600 $233,400 Vault Bank 27,500 205,400 Take Off Airlines 121,000 150,000 Sleepy Tired Hotels 137,700 112,200 Tastee Beverages $701,000 $347,800 Total 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 accoun 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. Work in Process Previous Next
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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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 55% of media purchases.
On August 1, the four advertising projects had the following accumulated costs:
August 1 Balances
Vault Bank
$87,600
Take Off Airlines
26,300
Sleepy Tired Hotels
61,300
Tastee Beverages
37,700
Total
$212,900
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
$61,600
$233,400
Vault Bank
27,500
205,400
Take Off Airlines
121,000
150,000
Sleepy Tired Hotels
137,700
112,200
Tastee Beverages
$347,800
$701,000
Total
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.
Work in Drocess
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Transcribed Image Text:nprogres
faise
Home Page | Zora...
Welcome, Quente... Library Genesis
Macmillan Launch...
D (7) YouTube
O My Conversations...
bnc Apparel, Gifts & T...
Reading List
Vault Bank
$61,600
$233,400
Take Off Airlines
27,500
205,400
Sleepy Tired Hotels
121,000
150,000
Tastee Beverages
137,700
112,200
Total
$347,800
$701,000
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.
Work in Process
а.
Salaries Payable
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
Accounts Payable
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.
Work in Process
С.
Agency Overhead
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
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