Donation Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2014: LOADING...(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 account for indirect materials.

Costs incurred:
Purchases of direct materials (net) on credit	$124,000
Direct manufacturing labor cost	83,000
Indirect labor	54,100
Depreciation, factory equipment	34,000
Depreciation, office equipment	7,200
Maintenance, factory equipment	22,000
Miscellaneous factory overhead	9,100
Rent, factory building	71,000
Advertising expense	92,000
Sales commissions	31,000

Inventories:
	January 1, 2014	December 31, 2014
Direct materials	$9,500	$16,000
Work in process	6,200	27,000
Finished goods	69,000	27,000

Requirements 1. Prepare journal entries to record the transactions for 2014 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.

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.