construction businesses to prepare building plans

Income Statement, Cost of Services Provided, Service Attributes Berry Company is an architectural firm located in Detroit, Michigan. The company works with small and medium-size construction businesses to prepare building plans according to the client’s contract. The following data are provided for the previous year:

Required:

1. Calculate the cost of goods manufactured.

2. Calculate the cost of goods sold.

3. Assume that the average fee for a design is $2,100. Prepare an income statement for Berry.

4. Conceptual Connection: Refer to the cost of goods sold (calculated in Requirement 2). What is the dominant cost? Briefly explain why this cost is the dominant one for Berry.

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