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Job order cost accounting entries for a service business Media Conned Inc. provides advertising services for clients across the nation. Media Connect is presently working on four projects, each for a different client. Media Connect 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 40% of media purchases. On April 1, the four advertising projects had the following accumulated costs: During April, Media Connect incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: At the end of April, both the First Bank and Reliable Airlines campaigns were completed. The costs of completed campaigns are added to the cost of services account. Determine each of the following for the month: a.Direct labor or costs. b.Media purchases. c. Overhead applied. d.Cost of completed First Bank and Reliable Airlines campaigns.

BuyFind

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883
BuyFind

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

Solutions

Chapter
Section
Chapter 10, Problem 10.20E
Textbook Problem

Job order cost accounting entries for a service business
Media Conned Inc. provides advertising services for clients across the nation. Media Connect is presently working on four projects, each for a different client. Media Connect 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 40% of media purchases. On April 1, the four advertising projects had the following accumulated costs:

Chapter 10, Problem 10.20E, Job order cost accounting entries for a service business Media Conned Inc. provides advertising , example  1
During April, Media Connect incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts:

Chapter 10, Problem 10.20E, Job order cost accounting entries for a service business Media Conned Inc. provides advertising , example  2
At the end of April, both the First Bank and Reliable Airlines campaigns were completed. The costs of completed campaigns are added to the cost of services account. Determine each of the following for the month:
a.Direct labor or costs.
b.Media purchases.
c. Overhead applied.
d.Cost of completed First Bank and Reliable Airlines campaigns.

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Chapter 10 Solutions

Survey of Accounting (Accounting I)
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