Home Designs Company Designs Decks,gazebos,and Play Equipment for Residential Homes

Home Designs Company designs decks,gazebos,and play equipment for residential homes.The following was provided for the year ended June 30:
$\begin{array}{llr} \text { Direct labour } &\$600,000\\ \text { Direct material purchases } &40,000\\ \text { Administrative} &130,000\\ \text {Overhead. } &75,000\\ \text { Selling } &265,000\\ \text { Beginning direct materials inventory } &20,000\\ \text { Beginning designs in process } &14,000\\ \text { Ending direct materials inventory} &10,000\\ \text { Ending designs in process } &39,000\\\end{array}$
The average design fee is $700.There were 2,000 designs processed during the year.
a.Prepare a statement of cost of services sold.
b.Prepare an income statement.
c.Discuss three differences between services and tangible products.