Income Statement

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 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings:

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 1.5 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	$470,000
Variable overhead	16,000
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:

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
	$
	$

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