Costs incurred: $ 121,000 87,000 54,400 53,000 Purchases of direct materials (net) on credit Direct manufacturing labor cost Indirect labor Depreciation, factory equipment Depreciation, office equipment Maintenance, factory equipment Miscellaneous factory overhead Rent, factory building Advertising expense Sales commissions 7,700 46,000 9,100 99.000 97,000 39,000 Inventories: Direct materials January 1, 2017 December 31, 2017 $ 9.400 $ 18,000 6,500 26.000 Work in process Finished goods 60.000 31,000 Print Done Clear All Chat Visual 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.) Visual Co. uses a normal costing system and allocates overhead to work in process at a rate of $3.10 per direct manufacturing labc 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. Als note which subsidiary ledger, if any, should be referenced as backup for the entry (Record debits first, then credits Exclude explanations from any joumal entries) Record the purchase of direct materials, $121,000 Journal Entry Accounts Debit Credit Manufacturing Overhead Control Manufacturing Overhead Control Wages Payable Control nuf uf 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 ge . EU Print Done