S. pa at w my j e of Requirements - X 1. Prepare journal entries to record the transactions for 2020 including an entry to close out under- or overallocated 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. ed ov back Print Done Data table - X Costs incurred: Purchases of direct materials (net) on credit Direct manufacturing labor cost Indirect labor Depreciation, factory equipment $ 120,000 84,000 54,900 34,000 lloc Depreciation, office equipment ed a 8,500 nal Maintenance, factory equipment 29,000 ect Miscellaneous factory overhead 9,100 Rent, factory building 72,000 Advertising expense 95,000 Sales commissions Inventories: 39,000 lp A January 1, 2020 December 31, 2020 Direct materials $ 9,800 $ 13,000 Work in process 6,000 27,000 Finished goods 64,000 30,000 Print Done Creation Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2020: (Click the icon to view the data) Creation Co. uses a normal-costing system and allocates overhead to work in process at a rate of $3.00 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials Read the requirements Requirement 1. Prepare journal entries to record the transactions for 2020 including an entry to close out under- or overallocated 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, $120,000. Journal Entry Accounts Debit Credit