Exercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead [L03-1, 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 Work in Process Finished Goods (a) 499,968 (b) 416,640 Bal. 5,36 (c) 778,000 Bal. 33,000 (d) 674,000 Bal. 83,328 319,500 (c) 778,000 93,500 Bal. 137,000 (b) 416,640 Bal. 57,000 Cost of Goods Sold 674,000 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 Overhead applied $ 27,360 65,760 323,520 $ 416,640 For example, of the $57,000 ending balance in work in process, $27,360 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). Reason Entry (a) (b) (c) (d) equired 2 > Actual manufacturing overhead costs incurred for the year. Cost of goods manufactured for the year. Cost of goods sold for the year. Overhead cost applied to Work in Process for the year. Journal entry worksheet > Record the adjustment of manufacturing overhead account to COGS. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Journal entry worksheet 1 Record the allocation of any balance in the manufacturing overhead account to other accounts. Note: Enter debits before credits. Event General Journal Debit Credit 1 ces Record entry Clear entry View general journal