E19-13 Tiffany Pratt, the bookkeeper for Bush, Clinton, and Obama, a politicalconsulting firm, has recently completed an accounting course at her local college. One of the topics covered in the course was the cost of goods manufactured schedule. Tiffany 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 contract $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 12,600 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 contact operations 1,400 Utilities for administrative offices 1,300

Instructions:

1. Prepare a schedule of cost of contract services provided (similar to a cost of goods manufactured schedule) for the month.
2. For those costs not included in (a), explain how they would be classified and reported in the financial statements.