Brigade Builders, Inc. designs decks, gazebos and play equipment for residences. The following was provided for the
Question:
Brigade Builders, Inc. designs decks, gazebos and play equipment for residences. The following was provided for the year ended September 30, 2018: Direct labor $800,000
Direct purchases of material 80,000
Administrative expenses 155,000
General expenses 95,000
Selling expenses 325,000
Beginning inventory of direct materials 43,000
Initial designs in progress 21,000
Ending inventory of direct materials 18,000
Final designs in process 45,000
The average design fee is $900. During the year, 3,500 designs were processed.
Required:
a. Prepare a statement of cost of services sold.
b. Prepare an income statement.
C. Discuss three differences between services and tangible products.
Governmental and Nonprofit Accounting
ISBN: 978-0132751261
10th edition
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi