Dorchester Bay Electronics Co. (DBEC) produces gadgets for the coveted small appliances market. The following data reflect activity for the year 2020:

Costs incurred: (in $)

Purchases of direct materials (net) on credit 124,000

Direct manufacturing labor cost 40,000

Indirect labor 30,500

Depreciation, factory equipment 50,000

Depreciation, office equipment 7,000

Maintenance, factory equipment 20,000

Miscellaneous, factory overhead 9,500

Rent, factory building 70,000

Advertising expense 90,000

Sales commissions 30,000

Inventories

January 1, 2020 December 31, 2020

Direct materials $9,000 $11,000

Work in process 6,000 21,000

Finished goods 69,000 24,000

DBEC uses a normal costing system and allocates overhead to work in process at a rate of $4.0 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials.

a. Complete the following journal entries to record the transactions for 2020 including an entry to close out over- or underallocated overhead to cost of goods sold.

b. Post the journal entries to T-accounts for all of the inventories(i.e., Direct Materials, Work in Process, Finished Goods), Cost of Goods Sold, the Manufacturing Overhead Account, and the Manufacturing Overhead Allocated Account.