Job 88 $0 Job 86 $15,310 $4,450 $16,000 Job 87 $4,250 $10,300 $12,200 Balance, July 1 $13,150 $24,000 Direct Materials Direct Labor Machine Hours 500 300 1000 Overhead is applied at a rate of: By July 31, Jobs 86 and 88 were completed, but Job 87 was still in production On July 1, the balance in Finished Goods inventory was $49,000, which was made up of two jobs, Job 82, total cost $25,600 and Job 84, total cost $23,400. During July, Job 82 and Job 86 were sold to customers. The company charges cost plus a 20% mark-up on cost as the sales price. During July, variable marketing expenses were 4% of sales and fixed marketing expenses were $1,275. Administrative expenses were $3,900. $10.00 per machine hour 1. Job 86 Job 87 Job 88 Balance, July 1 Direct materials Direct labor Applied overhead Total 2 Work in Process, July 31 3. Finished Goods: Beginning balance Transferred in Sold Ending balance, July 31 4. Cost of Goods Sold: Job 82 Job 86 Cost of Goods Sold during July 5. Sales Cost of goods sold Gross margin Less: Variable marketing expenses Fixed marketing expenses Administrative expenses Operating income