Construction Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2017: (Click the icon to view the data.) Construction Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.70 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials. Read the requirements. Requirement 1. Prepare journal entries to record the transactions for 2017 including an entry to close out over- or underallocated 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 credits. Exclude explanations from any journal entries.) Record the purchase of direct materials, $125,000. (1.) Journal Entry Accounts Debit Credit Requirements 1. Prepare journal entries to record the transactions for 2017 including an entry to close out over- or underallocated 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. Print Done Data table Costs incurred: Purchases of direct materials (net) on credit $ 125,000 Direct manufacturing labor cost 89,000 Indirect labor 54,200 Depreciation, factory equipment 33,000 Depreciation, office equipment 7,600 Maintenance, factory equipment 21,000 Miscellaneous factory overhead 9,600 Rent, factory building 73,000 Advertising expense 95,000 Sales commissions 30,000 Inventories: January 1, 2017 December 31, 2017 Direct materials 9,200 $ 18,000 Work in process 6,100 27,000 Finished goods 63,000 24,000