Exercise 4-53: To prepare journal entries for the month of July with the following CHANGES. First, 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).

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 3400 1980 1600 1400

By July, Jobs 741 and 743 were completed and sold. The remaining jobs were in process

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