Please ensure that the information from the picture is changed to the information listed below.Use the information in the problem 4-53 (picture listed below) 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). Problem 4-53 Overhead Application and Job-Order CostingHeurion Company is a job-order costing firm that uses a plantwide overhead rate based ondirect labor hours. Estimated information for the year is as follows:Overhead$789,000Direct labor hours100,000Heurion worked on five jobs in July. Data are as follows:Job 741Job 742Job 743Job 744Job 745Balance, July 1$29,870$27,880$ 0$ 0$ 8,420$5,215Direct materials$25,500$39,800$14,450$13,600Direct labor cost$61,300$48,500$28,700$24,500$21,300Direct labor hours4,0003,4001,9801,6001,400By 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 thenearest cent.)2. Prepare job-order cost sheets for each job showing all costs through July 31. (Note: Roundall amounts to the nearest dollar.)3. Calculate the balance in Work in Process on July 31.4. Calculate Cost of Goods Sold for July.

“Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Answered: Problem 4-53 Overhead Application and…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 62P: (Appendix 4A) Overhead Application, Journal Entries, Job Cost At the beginning of the year, Smith...

See similar textbooks

Related questions

Question

Please ensure that the information from the picture is changed to the information listed below.

Use the information in the problem 4-53 (picture listed below) 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).

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
$27,880
$ 0
$ 0
$ 8,420
$5,215
Direct materials
$25,500
$39,800
$14,450
$13,600
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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions