3, E4-30 (book/static) Part 1 of 19 HW Score: 46.85%, 4.69 of 10 points O Points: 0 of 2 Save Virtual Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2020: (Click the icon to view the data.) Virtual Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.50 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials. Requirement 1. Prepare journal entries to record the transactions for 2020 including an entry to close out under- or overallocated overhead to cost of goods sold. For each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as backup for the entry. (Record debits first, then crdits. Exclude explanations from any journal entries.) Record the purchase of direct materials, $125,000. (1.) Journal Entry Accounts Debit Credit Data table Costs incurred: Purchases of direct materials (net) on credit Direct manufacturing labor cost Indirect labor Depreciation, factory equipment $ 125,000 88,000 54,700 36,000 Depreciation, office equipment 7,300 Maintenance, factory equipment 26,000 Miscellaneous factory overhead 9,600 Rent, factory building 70,000 Advertising expense Sales commissions 92,000 36,000 Inventories: January 1, 2020 December 31, 2020 Direct materials $ 9,700 $ 13,000 Work in process 6,200 24,000 Finished goods 66,000 32,000 - Requirements 1. Prepare journal entries to record the transactions for 2020 including an entry to close out under- or overallocated overhead to cost of goods sold. For each journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced as backup for the entry. 2. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control Account, and the Manufacturing Overhead Allocated Account. 4 K Virtual Comp BB (Click the Virtual Co. us Indirect mate Read the req Accounts Payable Control Accumulated Depreciation Control Advertising Expense Cash Control Commission Expense Cost of Goods Sold HW Score: 46.85%, 4. O Points: 0 of 2 lowing data reflect activity s at a rate of $2.50 per dir rials. Record the p Finished Goods Control (1.) Manufacturing Overhead Allocated Debit Credi