Overhead rate based on direct labor cost = ($950,000 $500,000) = 190%.

Jan. 31 Work in Process Inventory 76,000

Manufacturing Overhead ($40,000 190%) 76,000

3. (LO 4) In May, Huntzinger Company completes Jobs 14, 15, and 16. Job 14 cost $40,000, Job 15 $70,000, and Job 16 $35,000. On May 31, Job 14 is sold to a customer on account for $72,000. Journalize the entries for the completion of the three jobs and the sale of Job 14.