Exercise 3-8 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 467,712 (b) Finished Goods Work in Process (d) 646,000 Bal. Bal. 47,000 389,760 18,240 (c) 722,000 (a) 722,000 270,500 (c) 77,952 Bal. 86,500 Bal. 123,000 389,760 (b) 43,000 Bal. Cost of Goods Sold 646,000 (d) 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 20,640 59,040 310,080 Cost of Goods Sold $ 389,760 Overhead applied For example, of the $43,000 ending balance in work in process, $20,640 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 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 3 Required 2 Required 1 Identify reasons for entries (a) through (d). Reason Entry (a) (b) c) (d) Required 2 Required S Check my work 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 Journal entry worksheet Record the adjustment of manufacturing overhead account to COGS. Note: Enter debits before credits. Debit Credit General Journal Event 1 View general journal Clear entry Record entry 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 Journal entry worksheet > 1 Record the allocation of any balance in the manufacturing overhead account to other accounts. Note: Enter debits before credits. Credit Debit General Journal Event 1 View general journal Clear entry Record entry