ompany produces gadgets for the coveted small appliance market. The f

ompany produces gadgets for the coveted small appliance market. The f
ompany produces gadgets for the coveted small appliance market. The following data reflects activity for the year 2011: Costs incurred: Purchases of direct materials (net) on credit ,000 Direct manufacturing labor cost 85,000 Indirect labor 54,600 Depreciation, factory equipment 39,000 Depreciation, office equipment 7,700 Maintenance, factory equipment (wages) 29,000 Miscellaneous factory overhead 9,000 Rent, factory building 75,000 Advertising expense 99,000 Sales commissions (salary) 35,000 Inventories: January 1, 2011 December 31, 2011 Direct materials ,900 ,000 Work in process 6,500 26,000 Finished goods 67,000 26,000 u00a0u00a0 Co. uses a normal cost system and allocates overhead to work in process at a rate of .00 per direct manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account for indirect materials. Requirements 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 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. Requirement 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 referenced as backup for the entry. (Record debits first, then credits. Explanations are not required. Leave unused cells blank.) Record the purchase of direct materials,,000. Journal Entry Accounts Debit Credit (1.) Record the direct materials used, ,900. Journal Entry Accounts

ompany produces gadgets for the coveted small appliance market. The f