Bill Berry, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of August are as follows:
$\begin{array}{lr}
\text { Direct materials } & 100 \
\text { CPA staff salaries } & 2,000 \
\text { Overhead } & 900 \
\text { Total } & \$ 3,000
\end{array}$
Number of tax returns 200
-Refer to the figure.What is the cost of services sold?

Question

Bill Berry, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of August are as follows:
$\begin{array}{lr}
\text { Direct materials } & 100 \
\text { CPA staff salaries } & 2,000 \
\text { Overhead } & 900 \
\text { Total } & \$ 3,000
\end{array}$
Number of tax returns	200
-Refer to the figure.What is the cost of services sold?

Quizplus · Accepted Answer

The cost of services sold includes all the costs incurred to prepare the tax returns, which are the sum of direct materials, CPA staff salaries, and overhead, totaling $3,000.

Bill Berry, CPA, Prepares Tax Returns Number of Tax Returns 200 -Refer to the Figure

Bill Berry, CPA, Prepares Tax Returns Number of Tax Returns 200
-Refer to the Figure