For August, Royal Consulting and Mediation Practice (RCMP) worked 1,000 hours for Alberta Company and 2,200 hours for Ontario Corporation. RCMP bills clients at the rate of $470 per hour; labor cost for its consulting staff is $270 per hour. The total number of hours worked in September was 3,200, and overhead costs were $67,000. Overhead is applied to clients at $27 per labor-hour. In addition, RCMP had $275,000 in marketing and administrative costs. All transactions are on account. All services were billed.

Required:
(a)	Show labor and overhead cost flows through T-accounts.

-Wages Payable

-WIP

-Cost of Services billed

-Service Overhead Control

-Applied Service OH

(b)	Prepare an income statement for the company for August. (Input all amounts as positive numbers.)