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 $1,500 $2,000 $850 Direct labor 1,900 1,300 900 1,520 720 Applied overhead 1,040 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 $800 $1,235 $3,600 $560 $80 Direct materials $5,000 $300 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 $1,100. 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 Sales Cost of goods sold Gross margin Selling and administrative expenses Operating income