On August $1,$ Cairle Companys work$-$in$-$process inventory consisted of three jobs with the following costs:

Job $70$ Job $71$ Job $72$

Direct materials $$1,700$ $$2,000$ $$850$

Direct labor $1,9001,300900$

Applied overhead $1,5201,040720$

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 $$800$ $$1,235$ $$3,600$ $$5,000$ $$300$ $$560$ $$80$

Direct labor $1,0001,4002,2001,800600850170$

Before the end of August, Jobs $70,72,73,$ and $75$ were completed. On August $31,$ Jobs $72$ and $75$ were sold.

Cairles selling and administrative expenses for August were $$1,100.$ Assume that Cairle prices its jobs at cost plus $30$ percent.

Required:

Prepare an income statement for Cairle Company for August.

Cairle Company

Income Statement

For the Month of August

Sales blank

Cost of goods sold blank

Gross margin blank

Selling and administrative expenses $1,100$

Operating income blank