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Question: 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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