Visual Company produces gadgets for the covetedsal applance market. The following data reflect activity for the year 2017: Click the icon to view the data.) Visual Co. uses a normal-costing system and allocates overhead to work in process at a rate of $3.10 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 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. (Record debits first, then credits. Exclude explanations from any journal entries.) Record the purchase of direct materials, $121,000 Journal Entry Accounts Debit Credit 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. Purchases of direct materials (net) on credit Direct manufacturing labor cost Indirect labor Depreciation, factory equ Depreciation, office equipment Maintenance, factory equipment Miscellaneous factory overhead Rent, factory building Advertising expense Sales commissions 121,000 87,000 54,400 53,000 7,700 46,000 9,100 99,000 97,000 39,000 ipment Inventories January 1, 2017 $ December 31, 2017 9,400 $ Direct materials Work in process Finished goods 18,000 26,000 31,000 6,500 60,000