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 Job 70 Job 71 72 Direct materials $1,700 $2,000 $850 Direct labor 1,900 1,300 900 Applied 1,520 1,040 720 overhead During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Job Job Job Job Job 71 Job 72 Job 73 70 74 75 76 Direct $800 $1,235 $3,500 $5,000 $300 $560 materials $80 Direct labor 1,000 1,400 2,200 1,800 600 900 180 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 $1,100. 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 $ Required: Prepare an income statement for Cairle Cairle Company Income Statement For the Month of August Cost of goods sold Gross margin Operating income Sales Selling and administrative expenses