Cost of Services Produced 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 1.2 hours. On average, HHH completes about 12,000 cleanings per year. The following total costs are associated with the total cleanings: Direct materials ? Direct labor $314,400 Variable overhead 13,200 Fixed overhead 15,600 Next year, HHH expects to purchase $35,000 of direct materials. Projected beginning and ending inventories for direct materials are as follows: Direct materials Inventory Beginning $4,400 Ending 3,000 There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of services produced in good form. If an amount is zero, enter "0". Happy Home Helpers, Inc. Statement of Cost of Services Produced For the Coming Year Direct materials $fill in the blank b7e172fbdf86044_2 fill in the blank b7e172fbdf86044_4 Materials available $fill in the blank b7e172fbdf86044_5 fill in the blank b7e172fbdf86044_7 Direct materials used in production $fill in the blank b7e172fbdf86044_8 fill in the blank b7e172fbdf86044_10 fill in the blank b7e172fbdf86044_12 Total services production costs added $fill in the blank b7e172fbdf86044_13 fill in the blank b7e172fbdf86044_15 fill in the blank b7e172fbdf86044_17 Cost of services produced $fill in the blank b7e172fbdf86044_18 2. What if HHH planned to purchase $39,700 of direct materials? Assume there would be no change in beginning and ending inventories of materials. What effect would this have on cost of services produced? Cost of services produced would by $fill in the blank 3e3bb1f75fc7f88_2

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Cost of Services Produced

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 1.2 hours. On average, HHH completes about 12,000 cleanings per year. The following total costs are associated with the total cleanings:

Direct materials	?
Direct labor	$314,400
Variable overhead	13,200
Fixed overhead	15,600

Next year, HHH expects to purchase $35,000 of direct materials. Projected beginning and ending inventories for direct materials are as follows:

	Direct materials Inventory
Beginning	$4,400
Ending	3,000

There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day.

Required:

1. Prepare a statement of services produced in good form. If an amount is zero, enter "0".

Happy Home Helpers, Inc.
Statement of Cost of Services Produced
For the Coming Year
Direct materials
	$fill in the blank b7e172fbdf86044_2
	fill in the blank b7e172fbdf86044_4
Materials available	$fill in the blank b7e172fbdf86044_5
	fill in the blank b7e172fbdf86044_7
Direct materials used in production		$fill in the blank b7e172fbdf86044_8
		fill in the blank b7e172fbdf86044_10
		fill in the blank b7e172fbdf86044_12
Total services production costs added		$fill in the blank b7e172fbdf86044_13
		fill in the blank b7e172fbdf86044_15
		fill in the blank b7e172fbdf86044_17
Cost of services produced		$fill in the blank b7e172fbdf86044_18

2. What if HHH planned to purchase $39,700 of direct materials? Assume there would be no change in beginning and ending inventories of materials. What effect would this have on cost of services produced?

Cost of services produced would by $fill in the blank 3e3bb1f75fc7f88_2

Cost of Services Produced
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 1.2 hours. On average,
HHH completes about 12,000 cleanings per year. The following total costs are associated with the total cleanings:
Direct materials
?
Direct labor
$314,400
Variable overhead
13,200
Fixed overhead
15,600
Next year, HHH expects to purchase $35,000 of direct materials. Projected beginning and ending inventories for direct materials are as follows:
Direct materials Inventory
Beginning
$4,400
Ending
3,000
There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day.
Required:
1. Prepare a statement of services produced in good form. If an amount is zero, enter "0".
Happy Home Helpers, Inc.
Statement of Cost of Services Produced
For the Coming Year
Direct materials

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Cost of service sold can be calculated by adding all the direct cost that is incurred to provide the service to the customer of the company. It is also used to calculate the net profit of the company.

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