See attached question PrePaymecludes Erges%24te: 10/01/21Course: ACC 202 64 Cost AccounitngInception Company produces gadgets for the coveted small appliance market. The following data reflect activity for the year 2020:1(Click the icon to view the data.)Inception 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 areinsignificant 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. Foreach journal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced asbackup for the entry. (Record debits first, then credits. Exclude explanations from any journal entries.)Record the purchase of direct materials, $127,000.Journal EntryAccountsDebitCredit(1.)|(1)(2)(3)()Now select the appropriate source documents and subledgers for the purchase of direct materials. (Only complete the necessary answer boxes.)Source documentsSubsidiary ledgers(9)(8)(1.)(5)(2)(6)(11)|(12)(13)(14)Record the direct materials used.21Chapter 4 Homework-sehrish bashirCosts incurred:Purchases of direct materials (net) on credit$ 127,000000'54,700Direct manufacturing labor costIndirect laborDepreciation, factory equipment7,800Depreciation, office equipmentMaintenance, factory equipmentMiscellaneous factory overheadRent, factory building000'6Advertising expenseSales commissionsInventories:January 1, 2020December 31, 20209,400 $Direct materials000Work in process000Finished goodsRequirementsJourmal entry indicate the source document that would be used to authorize each entry. Also note which subsidiary ledger, if any, should be referenced abackup for the entry.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 ear he journal entries to T-accounts for all of the inventories. Cost of Goods Sold, the Manufacturing Overhead Control Account, and the ManufacturOverhead Allocated Account.2. Chapler 4-Homework-shrsh bashiJournal EntryAccountsDebit(24)(18)Now select the appropriate source documents and subledgers for the direct materials used. (Only complete the necessary answer boxes)Source documentsSubsidiary ledgers(02)(22)(1)(24)(25)(92)(28)Record the direct and indirect labor payable in a single entry, $87,000 and $54,700 respectively.Journal EntryAccountsDebitCredit(62)(0)(32)Now select the appropriate source documents and subledgers for the direct and indirect labor transactions. (Only complete the necessary answer boxes.)Source documents(')(33)(35)(34)(36)(37)|(38)(0)(42)(41)10/1/2021Prepare a consolidated entry to record the depreciation on factory equipment, the maintenance wages on factory equipment, the prepaid factory rent expired and themiscollaneous factory overhead payable.Chapter 4- Homework-sehrish bashirJournal EntryAccountsDebit(43)(44)(45)(46)(7)Now select the appropriate source documents and subledgers for the depreciation on factory equipment, the maintenance wages on factory equipment, the prepaidfactory rent expired and the miscellaneous factory overhead transactions. (Only complete the necessary answer boxes.)Source documentsSubsidiary ledgers(4.) (48)(49)(51)(52)(53)(54)(55)|(57)(5)Record the manufacturing overhead allocated.Journal EntryAccountsDebitCredit(58)(5)(09)(61)Now select the appropriate source documents and subledgers for the manufacturing overhead allocated transactions. (Only complete the necessary answer boxes.)10/1/2021Chapter 4 - Homework-sehrish bashirSource documentsSubsidiary ledgers(5.) (62)(64)(63)|(65)(68)(7)(69)(71)Record the transfer of completed jobs.Journal EntryAccountsDebitCredit(72)('9)(73)(74)(75)Now select the appropriate source documents and subledgers for the transfer of completed job transaction. (Only complete the necessary answer boxes.)Source documentsSubsidiary ledgers(76)|(77)(78)(79)(81)(08)(82)(83)(84)(85)Record the cost of goods sold.Journal EntryAccountsDebitCredit(86)(2)(87)(88)(68)Now select the appropriate source documents and subledgers for the cost of goods sold transactions. (Only complete the necessary answer boxes.)https://xlitemprod.pearsoncmg.com/api/v1/print/higheredChapter 4 - Homework-sehrish bashir10/1/2021Subsidiary ledgersSource documents(91)(2)(06)(92)(93)(94)(95)(96)(98)(69)Prepare a consolidated entry to record the depreciation on office equipment, the commissions payable and the advertising payable.Journal EntryDebitCreditAccounts(00)|(101)(8.)|(102)|(103)(104)(105)Now select the appropriate source documents and subledgers for the depreciation on office equipment, the commissions and the advertising transactions. (Onlycomplete the necessary answer boxes.)Subsidiary ledgersSource documents(107)(8.) (106)(108)(111)(110)(112)|(113)(115)(114)Dispose of over- or underallocated manufacturing overhead.Chapter 4 - Homework-sehrish bashir10/1/2021Journal EntryDebitCreditAccounts(116)|(117)(118)(119)Now select the appropriate source documents and subledgers for the over- or underallocated manufacturing overhead transaction. (Only complete the necessaryanswer boxes.)Subsidiary ledgersSource documents(121)|(120)(9)(122)(123)(125)(124)(127)(126)Requirement 2. Post the journal entries to T-accounts for all of the inventories, Cost of Goods Sold, the Manufacturing Overhead Control Account, and theManufacturing Overhead Allocated Account.(129)(128)Post entries (1) through (9) to the accounts below, then calculate the ending balance in each account. (For accounts with a $0 balance, leave the balance cells blank.)Review the journal entries from requirement 1.

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Journal entry shows the recording of the transaction during an accounting year. Every entry have…