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: The overhead that had been applied to ptoduction 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: For example, of the $49,000 ending balance in work in process, $23.520 was overhead that had been applied during the year. Required: 1. Identify reasons for entries (o) 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 underopplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry