Question

Job-Order Cost Sheets, Balance in Work in Process andFinished Goods

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

	Job86	Job87	Job88
Balance, July 1	$21,370	$6,280	$0
Direct materials	$10,510	$12,350	$16,190
Direct labor	$16,040	$12,240	$24,030
Machine hours	500	290	980

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 weresold. Job 87 remained in process. On July 1, the balance inFinished Goods was $49,010 (consisting of Job 82 for $25,580 andJob 84 for $23,430).

Prull prices its jobs at cost plus 30%. During July, variablemarketing expenses were 4% of sales, and fixed marketing expenseswere $2,020; administrative expenses were $4,800. (Round allamounts to the nearest dollar.)

	Required:
1.	Prepare job-order cost sheetsfor all jobs in process during July, showing all costs through July31.
2.	Calculate the balance in Workin Process on July 31.
3.	Calculate the balance inFinished Goods on July 31.
4.	Calculate Cost of Goods Soldfor July.
5.	Calculate operating income forPrull Company for the month of July.