Exercise 3-8 (Algo) Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead [LO3-1, LO3-2, LOS-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 production during the year is distributed among Work in Process, Finished Goods, and Cast of Goods Sold as of the end of the year as follows: For example, of the $45,000 ending balance in work in process, $21,600 was overhead that had been applied during the year. Pequired: 1. Identify teasons for entries (o) through (d) 2. Assume that the underapplied or overepplied overhead is closed to Cost of Goods Sold. Prepare the necessary joumal entry Goods Sold. Prepare the necessary joumal entry. 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. Identiry roasons for entries (o) through (d). Assume that the underapplied or overapplied overhead is closed to Cost of Coods Sold. Prepare the neceisary journal entry. (IF no entry is required for a transaction/evert, select "No foumal entry required" in the first account field.) Journal entry worksheet Record the adjustment of manufacturing overtiead scogunt to cs Note. Enter debits befork credit. Assume that the underapplied or overapplied overhead is closed proportionally to Work In Process, Finished: Goods, and Cont of Goods Soid. Prepare the necessary journal entry, Soid. Prepare the necessary journal entry. (If no entry is nequired for a transaction/event, select "Wo journal entry required" in the first. account field. Do not round intermediate calculations.) Journal entry worksheet Record the allocation of any bolance in the manufacturing overhead sccount to other accounts. Notnit Finter debies befare cregita