# Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August 1, Cairl

Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost
On August 1, Cairle Company’s work-in-process inventory consisted of three jobs with the following costs:
Job 70Job 71Job 72Direct materials\$1,500\$2,000\$850Direct labor1,9001,200900Applied overhead1,520960720
During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows:
Job 70Job 71Job 72Job 73Job 74Job 75Job 76Direct materials\$800\$1,235\$3,600\$5,000\$300\$560\$80Direct labor1,0001,4002,2001,800600900170
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.
% of direct labor cost.
2. Calculate the ending balance for each job as of August 31.
Ending BalanceJob 70\$Job 71\$Job 72\$Job 73\$Job 74\$Job 75\$Job 76\$
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 10 percent, calculate Cairle’s sales revenue for August.
\$