Income Statement Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost n 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 $1,500 $2,000 $850 Direct labor 1,900 1,300 900 Applied overhead 1,520 1,040 720 uring 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 $3,600 $5,000 $300 $560 $80 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 25 percent. Applica uring 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 $3,600 $5,000 $300 $560 $80 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 25 percent Required: Prepare an income statement for Cairle Company for August. Cairle Company Income Statement For the Month of August