Alton LLC is a small manufacturer of gold and platinum jewelry. It uses a job costing system that allocates overhead on the basis of direct labor-hours. Budgeted factory overhead for the year 2018 is $443,800, and management budgeted 31,700 direct labor- hours. The companys tax rate is 21%. (Round taxes to the nearest dollar)

The trial balance of Platinum Wish. on June 30 is as follows: Cash $21,800 Accounts Receivable.. 16,200 Finished Goods.. 13,900 Work in Process. 30,000 Materials 7,400 Prepaid factory Insurance..... 5,000 Machinery and Equipment 300,000 Accumulated Depreciation $60,000 Accounts Payable.. 8,900 Common Stock. 200,000 Retained Earnings 125,400 Total $394,300 $394,300 These transactions are to be recorded for July 2018: July 1. Received a 3-year loan from First State Bank, $185,000. 2. Purchased $24,500 of materials on account (Direct materials). 3. Purchased 21 pounds of high- grade polishing materials for cash at $5 per pound (indirect material). 5. Paid factory utility bill, $6,510 in cash. 7. Paid factory rent, $3,000.

10. Incurred selling expenses on account, $5,660. 11. Requisitioned $18,500 of direct materials and $50 of indirect materials from materials inventory. 13. Declared a cash dividend of $2,000. 15. Paid restructuring costs, $2,350. 17. Paid other factory overhead costs, $5,770. 19. Paid administrative expense, $8,500.

25. Accrue the following payroll costs:

Direct labor costs 3,550 hours at $30 an hour.

Indirect labor costs, $29,000. 27. Prepaid factory insurance expired, $1,600. 28. Depreciation of office equipment $1,025 and depreciation on factory machinery and equipment, $3,505. 28. Paid payroll costs totaling, $135,000.

28. Incurred research and development expense on account, $3,750. 29. Allocated factory overhead to production on the basis of direct labor- hours. 29. Completed goods costing $ 65,000 and transferred them to the finished goods warehouse. 30. Credit sales for July, $86,410. The cost of goods sold was $47,860. 30. Collected from accounts receivable, $80,000. 30. Accrue interest on loan, $1,850. 30. Calculate the overallocated or underallocated overhead and close this amount to the Cost of Goods Sold account.

Required 1. Compute the companys factory overhead allocation rate for the year. 2. Prepare journal entries to record July transactions. Explanations are not required.

3. Post the journal entries to the appropriate general ledger accounts. 4. Prepare a trial balance for July. 6. Prepare a multiple-step income statement and a classified balance sheet for July.