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 Over hond Debit Credit Xa 508, 880D 422,400 Balne 84.480 000 Work in Procon Debit Credit Balance 2000) 330,000 95.000 () 422 400 Balance 80,000 Finished Good Dobit Credit Balance 30,000 (d 1680.000 e) 790,000 Balance 140.000 Coat of Goods Sold Dobit Credit 380.000 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 nun $ 28.800 67.200 326.400 492 am 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 (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. Required 1 Required 2 Required 3 Identify reasons for entries (a) through (d). Entry Reason (a) Actual manufacturing overhead costs incurred for the year (b) overhead cost applied to Work in Process for the year. (c) Cost of goods manufactured for the year (d) Cost of goods sold for the year. Check my w 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. Required 1 Required 2 Required 3 Assume that the underapplied or overapplied overhead is closed to cost of Goods Sold. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Event General Journal Credit Cost of goods sold 84 480 Manufacturing overhead 84,480 Debit 1 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) View transaction list View journal entry worksheet No Event Credit Debit 36,205 1 1 General Journal Work in process Finished goods Cost of goods sold Manufacturing overhead 84,480