Direct Materials used in Production 27000 Direct Labor 472500 Cleaning Overhead

Direct materials used in production 27000 direct

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Direct Materials used in Production 27,000 Direct Labor 472,500 Cleaning Overhead 33,000 Total Services Production Costs Added 532,500 Add: Beginning WIP 0 Less: Ending WIP 0 Cost of Services Provided 532,500 b.What if HHH planned to purchase $30,000 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? 7.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 materialsDirect labor472,500Variable overhead15,000Fixed overhead18,000Next year, HHH expects to purchase $25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows:Direct Materials InventoryBeginning4,000Ending 2,600There 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:
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a.Prepare a statement of cost of services sold in good form. If an amount is zero, enter "0". b.How does this cost of services sold statement differ from the cost of goods sold statement for a manufacturing firm? 8.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 materialsDirect labor472,500Variable overhead15,000Fixed overhead18,000Next year, HHH expects to purchase $25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows:Direct Materials InventoryBeginning4,000Ending 2,600
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