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E1-13 Joyce Tombert

Price: $1.99


E1-13 Joyce Tombert, the bookkeeper for Marks Consulting, a political consulting firm,
has recently completed a managerial accounting course at her local college. One of the
topics covered in the course was the cost of goods manufactured schedule. Joyce wondered
if such a schedule could be prepared for her fi rm. 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, 2014.


Supplies used on consulting contracts   1,200
Supplies used in the administrative  offices   1,500
Depreciation on equipment used for contract work   900
Depreciation used on administrative office equipment   1,050
Salaries of professionals working on contracts   15,600
Salaries of administrative offi ce personnel   7,700
Janitorial services for professional offices   400
Janitorial services for administrative  offices   500
Insurance on contract operations   800
Insurance on administrative operations   900
Utilities for contract operations   1,400
Utilities for administrative offices   1,300

Instructions
(a) Prepare a schedule of cost of contract services provided (similar to a cost of goods
manufactured schedule) for the month.
(b) For those costs not included in (a), explain how they would be classified and reported
in the financial statements.

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