I need to prepare of statement of cost of services sold for a tax services firm, the firm employs 15 professionals and eight staff. Following data was provided from last fiscal year:

Returns processed: 3,000

Returns in process - beginning of year $ 44,000

Returns in process - end of year 13,000

Cost of services sold 1,577,500

Beggning direct materials inventory 20,000

Purchases, direct material 40,000

Direct labor 1,400,000

Overhead 100,000

Admistrative expenses 257,000

Selling expenses 65,000