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 Taccounts are summaries of the transactions that affected those accounts during the year. Work in Proce (a) Manufacturing Overhead 506,10 TO BEL. Tinished Goods 30.00) 630, ODD 790,000 140,00 330,000 95, DE.. 30. GD, Coat of Goods Sold 630,000 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: Works , ending Tinished Goode, ending Coat of Goods Sold Overhead applied $ 28,00 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 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