Che Exercise 3-8 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 506,880 Kb) 422,400 34,480 Bal. 790,000 1. 680,000 Bal. (0) Work in Process 2,600 (c) 330.000 95.000 422.400 60,000 Finished Goods 30,000 (d) 799. 140,000 Bal. O Cost of Goods Sold 680,000 (d) 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 Finished Goods, ending Cost of Goods Sold Overhead applied 5 28.800 67.200 326,400 $ 422,400 For example, of the $60.000 ending balance in work in process. $28,800 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3