Design Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2020: 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 material 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. Costs incurred: Purchases of direct materials (net) on credit $122,000.00 Direct manufacturing labor cost 84,000 Indirect labor 54,200 Depreciation, factory equipment 36,000 Depreciation, office equipment 8,500 Maintenance, factory equipment 22,000 Miscellaneous factory overhead 9,400 Rent, factory building 79,000 Advertising expense 98,000 Sales commissions 37,000