Turn in answers only on or before April 41, 2018 1. Creation Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2014: Costs incurred: Purchases of direct materials (net) on credit S122,000 Direct manufacturing labor cost Indirect labor Depreciation, factory equipment Depreciation, office equipment Maintenance, factory equipment Miscellaneous, factory overhead Rent, factory building Advertising expense Sales commissions 83,000 54,000 32,000 7,900 29,000 9,900 78,000 94,000 33,000 Inventories January 1, 2014 December 31, 2014 Direct materials 9,800 Work in process 6,300 Finished goods $13,000 23,000 27,000 68,000 Creation 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 a. Prepare journal entries to record the transactions for 2014 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, Cost of Goods Sold, the Manufacturing Overhead Control Account