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An advertising agency used 65 hours of direct labor in creating advertising for a music festival. Direct labor costs $50 per

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Answer #1
Transaction General Journal Debit Credit
1 Services in process inventory 3250 =65*50
       Service wages payable 3250
(To record the agency’s direct labor)
2 Services in process inventory 2600 =65*40
      Services overhead 2600
(To record the applied overhead costs)
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