Reference no: EM133036648

Problem - Keisha Tombert, the bookkeeper for Washington 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 here are the costs her firm incurred for the month ended August 31, 2022.

Supplies used on consulting contracts $1,700

Supplies used in the administrative offices 1,500

Depreciation on equipment used for contract work 900

Depreciation 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

Required -

a. Prepare a schedule of cost of contract services performed (similar to a cost of goods manufactured schedule) for the month.

b. List the costs not included in (a), and then explain how they would be classified and reported in the financial statements.