Where the Boat Leaves From, Inc., is a manufacturer of custom built boat docks. At the beginning of July, two jobs were in progress: Lanier and Sinclair. Lanier and Sinclairs June 30th job cost records showed balances of $5,000 and $2,500, respectively. During July, one additional job was started: Hartwell.

Direct laborers are paid at a rate of $20 per hour. The company uses a traditional, normal costing system to account for manufacturing overhead. Manufacturing overhead is allocated to production at a rate of $10 per direct labor hour.

The following actual factory overhead costs were incurred during the month: indirect materials $100, supervisors salary $500, and equipment depreciation $200. In addition, the sales staff is paid a 2% commission on gross revenue generated from jobs sold during the month.

The following additional information was extracted from the accounting records of Where the Boat Leaves From:

	Lanier	Sinclair	Hartwell
direct materials added during July	$500	$1,000	$1,400
direct labor costs incurred during July	$150	$750	$800

Lanier and Hartwell were sold at cost plus 80% during the month. Sinclair remained in process at month end. Calculate the Gross Profit reported on the Income Statement for July assuming the Manufacturing Overhead account is closed out to cost of goods sold at the end of each month.