Exercise 3-8 (Algo) Applying Overhead; Journal Entries; 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 Debit (a) 476,928 (b) Credit 397,440 Balance 79,488 Work in Process Debit Credit Balance 14,560 (c) 738,000 284,500 88,500 (b) 397,440 Balance 47,000 Finished Goods Debit Credit Cost of Goods Sold Debit Credit Balance 43,000 (d) 654,000 (d) 654,000 (c) 738,000 127,000 Balance The overhead that had been applied to production during the year is distributed mong Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the ear as follows: Work in Process, ending Finished Goods, ending ost of Goods Sold werhead applied $ 22,560 60,960 313,920 $ 397,440 example, of the $47,000 ending balance in work in process, $22,560 was head 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 (a) (b) (c) (d) Reason View transact Journal entry worksheet < 1 Record the adjustment of manufacturing overhead account to COGS. Note: Enter debits before credits. Event a. General Journal Debit Credit Record entry Clear entry View general journ Journal entry worksheet < 1 Record the allocation of any balance in the manufacturing overhead account to other accounts. Note: Enter debits before credits. Event a. General Journal Debit Credit View general journa Clear entry Record entry