On August 1, Cairle Company€™s work-in-process inventory consisted of three jobs with the following costs:

During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows:

Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold.
Required:
1. Calculate the predetermined overhead rate based on direct labor cost.
2. Calculate the ending balance for each job as of August 31.
3. Calculate the ending balance of Work in Process as of August 31.
4. Calculate the cost of goods sold for August.
5. Assuming that Cairle prices its jobs at cost plus 20 percent, calculate Cairle€™s sales revenue for August.

Transcribed Image Text:

Job 70 $1,600 1,900 1,425 Job 71 Job 72 Direct materials Direct labor Applied overhead $%2,000 1,300 975 $850 900 675 ЈоЬ 70 ЈоЬ 71 ЈоЬ 72 ЈоЬ 73 ЈоЬ 74 ЈоЬ 75 ЈоЬ 76 Direct materials S 800 $1,235 3,550 $5,000 $300 $560 S80 1,000 1,400 2,200 1,800 600 Direct labor 860 172