Concept explainers
Keisha Tombert, the bookkeeper for Washington Consulting, a political consulting firm, has recently completed a
Listed below are the costs her firm incurred for the month ended August 31, 2017.
Supplies used on consulting contracts | $ 1,700 |
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 office personnel | 7,700 |
Janitorial services for professional offices | 700 |
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 performed (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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