Donation Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year $2021$:

$($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 $$3\mathrm{.}20$ per direct manufacturing labour dollar. Indirect materials are insignificant, so there is no inventory account for indirect materials.

Requirement $1.$ Prepare journal entries to record the transactions for $2021$ 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. $($Record debits first, then credits. Exclude explanations from any journal entries.$)$

Record the purchase of direct materials, $$121,000.$