Job$-$Order Cost Sheets, Balance in Work in Process and Finished Goods

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 $1$ $$21,300$ $$6,160$ $$0$

Direct materials $$10,380$ $$12,320$ $$16,050$

Direct labor $$15,920$ $$12,110$ $$24,000$

Machine hours $500320990$

Overhead is applied to jobs at the rate of $$17$ per machine hour. By July $31,$ Jobs $86$ and $88$ were completed. Jobs $82$ and $86$ were sold. Job $87$ remained in process. On July $1,$ the balance in Finished Goods was $$49,100($consisting of Job $82$ for $$25,650$ and Job $84$ for $$23,450).$

Prull prices its jobs at cost plus $30\%.$ During July, variable marketing expenses were $5\%$ of sales, and fixed marketing expenses were $$1,970$; administrative expenses were $$4,840.($Round all amounts to the nearest dollar.$)$

Question Content Area

$1.$ Prepare job$-$order cost sheets for all jobs in process during July, showing all costs through July $31.$ All amount cells must have an entry; enter zeros as needed.

Prull Company

Job$-$Order Cost Sheets

For the Month of July

Line Item Description Job $86$ Job $87$ Job $88$

Balance, July $1$ $Balance, July $1$

$21,300$

$Balance, July $1$

$6,160$

$Balance, July $1$

$0$

Direct materials Direct materials

$10,380$

Direct materials

$12,320$

Direct materials

$16,050$

Direct labor Direct labor

$15,920$

Direct labor

$12,110$

Direct labor

$24,000$

Applied overhead Applied overhead

$8,500$

Applied overhead

$5,440$

Applied overhead

$16,830$

Total $Total

$56,100$

$Total

$36,030$

$Total

$56,880$

Question Content Area

$2.$ Calculate the balance in Work in Process on July $31.$

The balance in Work in Process on July $31$ is $36,030$

$3.$ Calculate the balance in Finished Goods on July $31.$

The balance in Finished Goods on July $31$ is $...$

$4.$ Calculate Cost of Goods Sold for July.

The cost of goods sold for July is$...$

$5.$ Calculate operating income for Prull Company for the month of July.

The operating income for the month of July is$...$