Assume that the company uses a plantwide overhead rate based on direct labor dollars. Also assume that estimated information for the year includes Direct labor dollars of $1,642,000. Finally, assume that the company sells its jobs at a selling price equal to (cost + 25% of cost markup). Create a journal entry

Problem 4-53 Overhead Application and Job-Order Costing Heurion Company is a job-order costing firm that uses a plantwide overhead rate based on direct labor hours. Estimated information for the year is as follows: Overhead $789,000 Direct labor hours 100,000 Heurion worked on five jobs in July. Data are as follows: Job 741 Job 742 Job 743 Job 744 Job 745 Balance, July 1 $29,870 $55,215 $27,880 $ 0 $ 0 Direct materials $25,500 $39,800 $14,450 $13,600 $ 8,420 Direct labor cost $61,300 $48,500 $28,700 $24,500 $21,300 Direct labor hours 4,000 3,400 1,980 1,600 1,400 By July 31, Jobs 741 and 743 were completed and sold. The remaining jobs were in process. Required: 1. Calculate the plantwide overhead rate for Heurion Company. (Note: Round to the nearest cent.) 2. Prepare job-order cost sheets for each job showing all costs through July 31. (Note: Round all amounts to the nearest dollar.) 3. Calculate the balance in Work in Process on July 31. 4. Calculate Cost of Goods Sold for July