Design Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2020: Design Co. uses a normal-costing system and allocates overhead to work in process at a rate of $3.20 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 credits. Exclude explanations from any journal entries.) Record the purchase of direct materials, $122,000. . 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. Costs incurred: Purchases of direct materials (net) on credit $122,000.00 Direct manufacturing labor cost 83,000 Indirect labor 54,600 Depreciation, factory equipment 35,000 Depreciation, office equipment 7,400 Maintenance, factory equipment 24,000 Miscellaneous factory overhead 9,600 Rent, factory building 79,000 Advertising expense 99,000 Sales commissions 36,000 Inventories: January 1, 2020 December 31, 2020 Direct materials $9,600.00 $16,000.00 Work in process 6,200 27,000 Finished goods 68,000 30,000 Now select the appropriate source documents and subledgers for the purchase of direct materials. (Only complete the necessary answer boxes.)