A family selects the following: basic services of funeral director and staff $2,195; transfer of remains $395; embalming $795; other preparation $275; use of facilities for visitation $495; funeral ceremony $595; funeral coach $375; casket $2,895. Cash advance items are 6 certified copies of the death certificate at $20 each, a clergy honorarium of $250, and an obituary notice of $360. What is the total on the Statement of Funeral Goods and Services Selected?
Show answer & explanation
Answer: C
- Formula: Statement total = goods and services subtotal + cash advance items subtotal.
- Goods and services: $2,195 + $395 + $795 + $275 + $495 + $595 + $375 + $2,895 = $8,020.
- Cash advance items: 6 × $20 = $120; $120 + $250 + $360 = $730.
- Total: $8,020 + $730 = $8,750 (dollars).
- Check: the total exceeds the goods-and-services subtotal by exactly the cash advances; each cash advance is listed separately on the Statement.
$8,020: Total of goods and services only; the cash advance items were left out.
$8,650: Counted one certified copy ($20) instead of six ($120).
$8,750: Correct. Goods and services $8,020 plus cash advance items $730 ($120 + $250 + $360) gives $8,750.
$9,480: Added the $730 of cash advance items twice.
The Statement itemizes the goods and services selected and lists each cash advance item separately; the total is both subtotals added together.