Inflection 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.) Inflection Co. uses a normal-costing system and allocates overhead to work in process at a rate of $2.60 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials. Read the requirements. Data Table Costs incurred: $ 127,000 Purchases of direct materials (net) on credit Direct manufacturing labor cost Indirect labor 85,000 54,100 34,000 7,600 25,000 Depreciation, factory equipment Depreciation, office equipment Maintenance, factory equipment Miscellaneous factory overhead Rent, factory building Advertising expense Sales commissions 9,000 74,000 96,000 38,000 Inventories: January 1, 2017 December 31, 2017 Direct materials 9,700 $ 16,000 Work in process 6,000 23,000 Finished goods 66,000 26,000 - Requirements 1. Prepare journal entries to record the transactions for 2017 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