Donation 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.) Donation Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.80 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory ac Read the requirements. . . . Requirement 1. Prepare journal entries to record the transactions for 2017 including nal entry indicate the source entry. Also note which subsidiary ledger, if any, should be referenced as backup for - X Data table Record the purchase of direct materials, $127,000. Journal Entry Costs incurred: Accounts Purchases of direct materials (net) on credit $ 127,000 ( 1. ) Direct manufacturing labor cost 82,000 Indirect labor 54,900 Depreciation, factory equipment 38,000 Depreciation, office equipment 7,400 Now select the appropriate source documents and subledgers for the purchase of di Maintenance, factory equipment 23,000 Source documents Subsidiary ledgers Miscellaneous factory overhead 9,400 (1.) Rent, factory building 76,000 Advertising expense 90,000 Sales commissions 34,000 Inventories: January 1, 2017 December 31, 2017 Etext pages Calculator Direct materials $ 9,400 $ 14,000 Work in process 6.700 29,000 Finished goods 65,000 33,000