Income Statement On August 1, Cairle Company's work-in-process inventory consisted of three jobs with the following costs: Direct materials Direct labor Applied overhead Job 70 Job 71 Job 72 $1,500 $2,000 $850 1,900 1,300 900 1,330 910 630 During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Job 76 Direct materials $800 $1,235 $3,500 $5,000 $300 $560 $80 Direct labor 1,000 1,400 2,200 1,800 600 850 170 Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold. Cairle's selling and administrative expenses for August were $1,300. Assume that Cairle prices its jobs at cost plus 20 percent. Required: Prepare an income statement for Cairle Company for August. Cairle Company Income Statement For the Month of August