Answer:
$532,500
Explanation:
The question is to compute the Statement of Cost of Services Sold for Happy Home Helpers Inc.
To compute this statement, the approach is to sum all direct costs associated with the service provided by the firm.
Particulars Amount Amount
Opening Inventory Of Materials $4,000
Add: The Purchase of Direct Materials $<u>25,600</u>
Direct Material available $29,600
Subtract: Closing Inventory of materials <u> ($2600)</u>
The Direct Material Used for the year $27,000
Add:
Direct Labour Cost $472,500
Variable Overhead Cost $15,000
Fixed Overhead cost $18,000
$505,500
The Cost of Services of HHH Inc $532,500
