EXERCISE 3-8 Applying Overhead; Journal Entrles; Disposing of Underapplled or Overapplled Overhead The following information is taken from the accounts of Latta Company. The entries in the Taccounts are summaries of the transactions that affected those accounts during the year. The oretheed thet had been applied to production daring the yeat is distributed among Work in Procers, Finithed Goeds, and Cort of Coatt Sold as of the end of the year as followy: For example, of the $40,000 ending belence in Work in Process, $19,500 was werhead that bad been applied during the jear Required: 1. Identify roasons for entries (c) through (d). 2. Assume that the underepplied or overepplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal catry: 3. Assume that the underepplied er overapplied overhcad is tlosed proportionally to Work in Process, Finished Goods, and Cost of Goodr Sold. Prepare the necessary journel entry. Provide supporting computations