3-8 Applying Overhead, Journal Entries, Disposing of Underapplied or Overapplied

EXERCISE 3-8 Applying overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead LO3-1, LO3-2, LO 3-4 The following information is taken from the accounts of Latta Company. The entries in t T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing overhead Work in Process (a) 460,000 (b) 390.000 Bal. 15,000 (c) 710,000 260,000 Bal. 70,000 85,000 (b) 390,000 Bal. 40,000 Cost of Goods Sold Finished Goods (d) 640,000 (d) 640,000 Bal. 50,000 (c) 710,000 Bal 120.000 The overhead that had been applied to production during the year is distributed among Wor in Process. Finished Goods, and Cost of Goods Sold as of the end of the year as follows