d 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 Debit Credit 467,712 (b) 389,760 Balance 77,952 Work in Process Debit Finished Goods Credit Debit Credit Balance 18,240 (c) 722,000 270,500 86,500 Balance 47,000 (d) (e) 722,000 Balance 123,000 646,000 (b) 389,760 Balance 43,000 Cost of Goods Sold Debit Credit (d) 646,000 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 $ 20,640 59,040 310,080 $389,760 For example, of the $43,000 ending balance in work in process, $20,640 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.