Income Statement Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August 1, Cairle Company's work-in-process inventory consisted of three jobs with the following costs: Job 70 Job 71 Job 72 Direct materials $1,700 $2,000 5850 Direct labor 1,900 1,300 900 Applied overhead 1,520 1,040 720 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 5800 $1,235 $3,600 S5,000 $300 $560 S80 Direct labor 1,000 1,400 2,200 1,800 600 850 180 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 Direct labor 1,000 1,400 2,200 1,800 600 850 180 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 Sales $ 15,626 X Cost of goods sold 12,020 X Gross margin Selling and administrative expenses 1,300 Operating income Feedback Check My Work Review what you have learned in the chapter