The Fly Company provides advertising services for clients across the nation. The Fly Company is presently...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $56,000 16,800 39,200 24,100 $136,100 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 Media Purchases Direct Labor Vault Bank $38,800 Take Off Airlines 17,300 Sleepy Tired Hotels 76,200 Tastee Beverages 86,700 $219,000 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. $145,900 128,300 93,700 70,100 $438,000 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. al 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. 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. C₁ 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 bir d. 8 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 $56,000 16,800 39,200 24,100 $136,100 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 Media Purchases Direct Labor Vault Bank $38,800 Take Off Airlines 17,300 Sleepy Tired Hotels 76,200 Tastee Beverages 86,700 $219,000 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. $145,900 128,300 93,700 70,100 $438,000 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. al 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. 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. C₁ 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 bir d. 8
Expert Answer:
Answer rating: 100% (QA)
Date Account Titles 31Aug Work In Process Salaries Pa... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
Students also viewed these accounting questions
-
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...
-
The Pedersen Company provides advertising services for clients across the nation. The Pedersen Company is presently working on four projects, each for a different client. The Pedersen Company...
-
When the wavelength of radiation falling on a metal is changed from 500 nm to 200 nm, the maximum kinetic energy of the photoelectrons becomes three times larger. The work function of the metal is...
-
Which is larger? 1. 1 second or 1 millisecond 2. 1 millisecond or 1 nanosecond 3. 1 ps or 1 s 4. 1 ms or 1 s
-
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $.50 per share, and there are 20,000 shares of stock outstanding. The market-value balance sheet for Payout is shown in...
-
What items must be included in a trial notebook?
-
The Starr Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. If investors require a return of 11...
-
(b) Let us evaluate the proposal that you borrow rather than pay cash using present value calculations. Do this by calculating the present value of your car payments if you pay cash (that is just the...
-
On January 1, 2023, Piper Company acquired an 80% interest in Sand Company for $2,276,000. At that time the capital stock and retained earnings of Sand Company were $1,800,000 and $700,000,...
-
The assignment is designed for students to practice the Capital Budgeting Process in project management by studying real case study. Guidelines for writing Critical Review & Evaluation: 1. Choose...
-
A cylindrical can needs to hold 500 cm of apple juice. The height of the can must be between 6 cm and 15 cm. What are the dimensions of the can so that the minimum amount of material is used? (Assume...
-
Find the optimal solution to the following problem: Minimize f(x, y, z) = x + y + z subject to: x+y+z = 2 5x+2y+z5 Formulate the Lagrange function. Do not expand nor simplify A
-
How do data-driven approaches such as organizational network analysis and predictive analytics inform decision-making processes within the realm of organizational development, enabling leaders to...
-
find the value of the integral by taking the limit of the sum as n - 3x (r + 1)dr
-
For 6 years, Al Ain Company ( AAC ) only produced one product: the basic electric kettle for boiling water. The kettle was the first on the market to have a reliability system enabling it to turn...
-
Perform BFS and DFS Traversal on the following graph and write the traversal output. Choose node 2 as the source. You must write all steps you perform for doing BFS and DFS Traversal on the following...
-
Find the radius of convergence in two ways: (a) Directly by the CauchyHadamard formula in Sec. 15.2. (b) From a series of simpler terms by using Theorem 3 or Theorem 4.
-
The following account appears in the ledger prior to recognizing the jobs completed in August: Jobs finished during August are summarized as follows: a. Journalize the entry to record the jobs...
-
The manufacturing costs of Lightfoot Industries for three months of the year follow: Using the high-low method, determine (a) The variable cost per unit. (b) The total fixed cost. Total Costs Units...
-
From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: a. The phase of the management process that uses process information to...
-
The life \(T\) in hours of a vibration transducer is found to follow exponential distribution \[p_{T}(t)= \begin{cases}\lambda e^{-\lambda t}, & t \geq 0 \\ 0, & t <0\end{cases}\] where \(\lambda\)...
-
Fill in the Blank. If any parameter of a vibrating system is not known precisely, the resulting vibration is called ____________ vibration.
-
The probability distribution function, \(P(\widetilde{x})\), denotes a. \(P(x \leq \tilde{x})\) b. \(P(x>\widetilde{x})\) c. \(P(\tilde{x} \leq x \leq \tilde{x}+\Delta x)\)
Study smarter with the SolutionInn App