Pavlovich Prosthetics Company produces artificial limbs for individuals. Each prosthetic is unique. On January 1, three jobs, identified by the name of the person being fitted with prosthetic, were in process with the following cost:

	Carter	Pelham	Tillson
Direct materials	$210	$615	$1,290
Direct labor	440	700	1,260
Applied overhead	374	595	1.071
Total	$1,024	$1,910	$3,621

During the month of January, two more jobs were started, Jasper and Dashell. Materials and labor costs incurred by each job in January are as follows:

	Materials	Direct Labor
Carter	$600	$300
Pelham	550	200
Tillson	770	240
Jasper	2,130	2,100
Dashell	190	240

Tillson and Jasper's prosthetics were completd and sold by January 31.

1. If overhead is applied on the basis of direct labor dollars, what is the overhead rate? 2. Prepare simple job-order cost sheet for each of the five jobs in process during January. 3. What is the ending balance of Work in Process on January 31? What is the Cost of Goods Sold in January? 4. Suppose that Pavlovich Prosthetic Company prices its job at cost plus 30%. In addition, during January. marketing and administrative expeses of $2,635 were incurred. Prepare an income statement for the month of January.