Latta Company provided the following T$-$accounts for this year.

Manufacturing Overhead

Debit Credit

$($a$)497,664($b$)414,720$

Balance $82,944$

Work in Process

Debit Credit

Balance $6,280($c$)774,000$

$316,000$

$93,000$

$($b$)414,720$

Balance $56,000$

Finished Goods

Debit Credit

Balance $34,000($d$)672,000$

$($c$)774,000$

Balance $136,000$

Cost of Goods Sold

Debit Credit

$($d$)672,000$

The overhead applied to production is distributed among Work in Process, Finished Goods, and Cost of Goods Sold at the end of the year as follows:

Work in Process, ending $ $26,880$

Finished Goods, ending $65,280$

Cost of Goods Sold $322,560$

Overhead applied $ $414,720$

For example, of the $$56,000$ ending balance in work in process, $$26,880$ was applied overhead.

Required:

Identify reasons for entries $($a$)$ through $($d$).$

Assume underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.

Assume underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.