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 Finished Goods Credit I Work in Process Debit Credit Debit Credit Debit (a) Balance 463,104 (b) 77,184 385,920 Balance 20,080 (c) 714,000 263,500 85,500 Balance 49,000 (d) (c) 714,000 Balance 121,000 (b) 385,920 Balance 41,000 642,000 Cost of Goods Sold Debit Credit (d) 642,000 Save 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 $ 19,680 58,080 308,160 $ 385,920 For example, of the $41,000 ending balance in work in process, $19.680 was overhead that had been applied during the year