Production Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2011: Costs incurred: Purchases of direct materials (net) on credit $124,000 Direct manufacturing labor cost Indirect labor 80,000 54,500 Depreciation, factory equipment 30,000 Depreciation, office equipment 7,000 Maintenance, factory equipment 20,000 Miscellaneous factory overhead. 9,500 Rent, factory building Advertising expense Sales commissions Inventories: 70,000 90,000 30,000 Required Direct materials Work in process Finished goods January 1, 2011 December 31, 2011 $ 9,000 $11,000 21,000 24,000 6,000 69,000 Production Co. uses a normal costing system and allocates overhead to work in process at a rate of $2.50 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials. 1. Prepare journal entries to record the transactions for 2011 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 refer- enced 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