Question
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.
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