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 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, 2012.
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 office 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.