Question

Keisha Tombert, the bookkeeper for Vaughn 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. 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, 2020. Supplies used on consulting contracts $1,940 Supplies used in the administrative offices 1,700 Depreciation on equipment used for contract work 910 Depreciation used on administrative office equipment 1,450 Salaries of professionals working on contracts 16,400 Salaries of administrative office personnel 8,690 Janitorial services for professional offices 800 Janitorial services for administrative offices 580 Insurance on contract operations 880 Insurance on administrative operations 930 Utilities for contract operations 2,360 Utilities for administrative offices 1,930 (a) Prepare a schedule of cost of contract services performed (similar to a cost of goods manufactured schedule) for the month.

Answer 1

$23,290.00

Step-by-step explanation:

Preparation forn a schedule of cost of contract services performed

Supplies used on consulting contracts 1,940.00

Salaries of professionals working on contract 16,400.00

Service Overhead:

Janitorial services for professional offices 800.00

Insurance on contract operations 880.00

Utilities for contract operations 2,360.00

Depreciation on equipment used for contract work 910.00

Total service overhead 4,950.00

(800.00+880.00+2,360.00+910.00)

Cost of Contract Services Provided 23,290.00

(1,940.00+16,400.00+4,950.00)

Administrative expenses:

Supplies used in administrative offices 1,700.00

Depreciation on administrative office equipment 1,450.00

Salaries of administrative office personnel 8,690.00

Janitorial services for administrative offices 580.00

Insurance on administrative operations 930.00

Utilities for administrative offices 1,930.00

TOTAL 15,280

Therefore the schedule of cost of contract services performed will be 23,290.00