Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

Exercise 50

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:

Heurion worked on five jobs in July. Data are as follows:

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.