Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prull Company, a job-order costing firm, worked on three jobs in July. Data are as follows: Line Item Description Job 86 Job 87 Job 88

Prull Company, a job-order costing firm, worked on three jobs in July. Data are as follows:

Line Item Description Job 86 Job 87 Job 88
Balance, July 1 $21,360 $6,340 $0
Direct materials $10,350 $12,200 $16,110
Direct labor $16,000 $12,280 $24,030
Machine hours 520 290 1,020

Overhead is applied to jobs at the rate of $15 per machine hour. By July 31, Jobs 86 and 88 were completed. Jobs 82 and 86 were sold. Job 87 remained in process. On July 1, the balance in Finished Goods was $48,920 (consisting of Job 82 for $25,570 and Job 84 for $23,350).

Prull prices its jobs at cost plus 30%. During July, variable marketing expenses were 5% of sales, and fixed marketing expenses were $1,950; administrative expenses were $4,850. (Round all amounts to the nearest dollar.)

Calculate operating income for Prull Company for the month of July.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Sustainable Development Goals Key Principles And Tools For Supply Chain

Authors: Barden Gonzalez

1st Edition

B0BZFDM86C, 979-8388651501

More Books

Students also viewed these Accounting questions