Cost of Services Sold

Jean and Tom Perritz own and manage Happy Home Helpers, Inc. $($HHH$),$ a house$-$cleaning service. Each cleaning $($cleaning one house one time$)$ takes a team of three house cleaners about $1\mathrm{.}5$ hours. On average, HHH completes about $15,000$ cleanings per year. The following total costs are associated with the total cleanings:

Direct materials $?$

Direct labor $$472,500$

Variable overhead $15,000$

Fixed overhead $18,000$

Next year, HHH expects to purchase $$25,600$ of direct materials. Projected beginning and ending inventories for direct materials are as follows:

Direct Materials Inventory

Beginning $$4,000$

Ending $2,600$

There is no work$-$in$-$process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day.

Required:

Question Content Area

$1.$ Prepare a statement of cost of services sold in good form. If an amount is zero, enter $"0".$

Happy Home Helpers, Inc.

Statement of Cost of Services Sold

For the Coming Year

$Cost of services produced

Add: Beginning finished goods

Less: Ending finished goods

$Cost of services sold

Feedback AreaCost of Services Sold

year. The following total costs are associated with the total cleanings:

Direct Materials Inventory

Beginning

$$4,000$

Ending

$2,600$

There is no work$-$in$-$process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day.

Required:

Prepare a statement of cost of services sold in good form. If an amount is zero, enter $"0".$

Happy Home Helpers, Inc.

Statement of Cost of Services

Sold

For the Coming Year

How does this cost of services sold statement differ from the cost of goods sold statement for a manufacturing firm?