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olya-2409 [2.1K]
3 years ago
5

Keisha Tombert, the bookkeeper for Washington Consulting, a political consulting firm, has recently completed a managerial accou

nting course at her local college. One of the topics covered in the course was the cost of goods manufactured schedule. Keisha wondered if such a schedule could be prepared for her firm. She realized that, as a service-oriented company, it would have no work in process inventory to consider.
Listed below are the costs her firm incurred for the month ended August 31, 2017.
Supplies used on consulting contracts $2,760
Supplies used in the administrative offices 2,270
Depreciation on equipment used for contract work 920
Depreciation used on administrative office equipment 1,810
Salaries of professionals working on contracts 16,100
Salaries of administrative office personnel 8,640
Janitorial services for professional offices 800
Janitorial services for administrative offices 590
Insurance on contract operations 830
Insurance on administrative operations 950
Utilities for contract operations 1,950
Utilities for administrative offices 2,310
Prepare a schedule of cost of contract services performed (similar to a cost of goods manufactured schedule) for the month.

Business
1 answer:
Mekhanik [1.2K]3 years ago
8 0

Answer:

The relevant costs to go into this schedule of cost of contract services performed will be those that are directly related to contract work.

Administrative costs are not to be included in the schedule but will instead go to the Income statement.

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