Donation 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.$)$ inventory account for indirect materials.

Read the requirements.

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 $t$ 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, $$129,000.$

Journal Entry

Accounts

$(1.)$

Debit

$$

Credit

$$

Data table

$\backslash$table$[[$Costs incurred:$],[\{$

$\backslash$table$[[$Direct manufacturing labor cost$]]\},$$ $129,000],[83,000],[$Indirect labor,$54,900],[$Depreciation$,$ factory equipment,$34,000],[$Depreciation$,$ office equipment,$7,400],[$Maintenance$,$ factory equipment,$22,000],[$Miscellaneous factory overhead,$9,700],[$Rent$,$ factory building,$77,000],[$Advertising expense,$\backslash$table$[[$Rent$,$ factory building$]],94,000],[$Sales commissions,$38,000],[$Inventories: December $31,2020],[\backslash$table$[[$Direct materials$],[$Work in process$]],$$$9,700,,15,000],[6,400,,21,000],[$Finished goods,$67,000,,29,000]]$