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 transactions that affected those accounts during the year (a) 504 576 16)420- 480 a 3,520 (c) 1,000(d) 678,000 326,500 94,500 Bal. 59,000 678, 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 Finished Goods, ending Cost of Goods Sold 66,720 325.440 S 420,480 Overhead applied For example, of the $59,000 ending balance in work in process, $28.320 was overhead that had been applied during the year For example, of the $59,000 ending balance in work in process, $28,320 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). Journal entry worksheet Clear entry Journal entry worksheet Record the allocation of any balance in the manufacturing overhead account to other accounts. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal