For August, Royal Consulting and Mediation Practice (RCMP) worked 900 hours for Alberta Company and 2,100 hours for Ontario Corporation. RCMP bills clients at the rate of $400 per hour; labor cost for its consulting staff is $200 per hour. The total number of hours worked in August was 3,000, and overhead costs were $60,000. Overhead is applied to clients at $24 per labor-hour. In addition, RCMP had $240,000 in marketing and administrative costs. All transactions are on account. All services were billed.

Transaction	Description
(a)	Record Labor cost
(b)	Record Applied Service Overhead
(c)	Record Cost of services billed
(d)	Record Actual Service Overhead

Required:

A. Show labor and overhead cost flows through T-accounts.

B. Prepare an income statement for the company for August.

PART A

Show labor and overhead cost flows through T-accounts.

*Please note only fields with blue arrow are fillable.

*Columns A and D are dropdown menus for Transactions (a) - closing

**Please see examples**

PART B

Prepare an income statement for the company for August.

*Please note only fields with blue arrows are fillable

*Column A Dropdown menu options Rows 1,2,5:

- Applied service overhead

- Cost of goods sold

- Cost of services billed

- Marketing and administration

- Service revenue

- Wages payable

- Work in process

Row 3

Add: Overapplied service overhead

Subtract Overapplied service overhead

Row 4

Gross loss

Gross margin

Row 6

Operating loss

Operating profit

**Please see example**

Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Beg. bal. 0 (a) (b) (c) (d) Cost of Services Billed Closing End bal Complete this question by entering your answers in the Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Beg. bal. E End. bal. . 0 Cost of Services Billed (a) (b) (c) (d) Beg. bal. (c) Closing End. bal. 0 IE Complete this question by entering your answers in the tabs below. Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Work-In-Process Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Cost of Services Billed Service Overhead Control Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Applied Service O.H. Beg. bal. End. bal. 0 Complete this question by entering your answers in the tabs below. Required A Required B Prepare an income statement for the company for August. ROYAL CONSULTING AND MEDIATION PRACTICE Income Statement For the Month Ended August 31 Applied service overhead Cost of goods sold Cost of services billed Marketing and administration Service revenue equired A Required Complete this question by entering your answers in the tabs below. Required A Required B Prepare an income statement for the company for August. ROYAL CONSULTING AND MEDIATION PRACTICE Income Statement For the Month Ended August 31