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 472,320 (6) 393,600 78,720 (a) Bal. Bal. 730,000 Work in Process 16,400 (c) 277,500 87,5ee 393 600 45,00 650,000 Finished Goods 45,000 (d) 730, 125,990 Ball ( (c) Bal (b) Bal. (d) Cast of Goods Sold 650,00 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 Overhead upplied $21,600 60,000 312, 393,600 For example, of the $45.000 ending balance in work in process, $21,600 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