2 3 points Exercise 3-8 (Algo) Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead [LO3-1, LO3-2, LO3-4] The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead Work in Process Finished Goods Debit Credit Debit Credit Debit Credit eBook (a) 486,144 (b) 405,120 Balance Balance 81,024 10,880 (c) 298,500 754,000 90,500 Balance 39,000 (d) (c) 754,000 Balance 131,000 662,000 (b) 405,120 Hint Balance 51,000 Cost of Goods Sold Debit Credit Print (d) 662,000 References The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: Work in Process, ending $ 24,480 62,880 317,760 Finished Goods, ending Cost of Goods Sold Overhead applied $ 405,120 For example, of the $51,000 ending balance in work in process, $24,480 was overhead that had been applied during the year. Required: 1. Identify reasons for entries (a) through (d). 2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry. 2 Required 1 Required 2 Required 3 3 points eBook Hint Print Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjustment of manufacturing overhead account to COGS. Note: Enter debits before credits. References Event General Journal Debit Credit a. Record entry Clear entry View general journal < Required 1 Required 3 > 2 ----,"" """" " " "", account field. Do not round intermediate calculations.) 3 points eBook View transaction list Journal entry worksheet < 1 Record the allocation of any balance in the manufacturing overhead account to other accounts. Hint Note: Enter debits before credits. Print References Event a. General Journal Debit Credit Record entry Clear entry View general journal < Required 2 Required 3 >