Latta Company provided the following T-accounts for this year. Manufacturing Overhead Work in Process Debit Credit Debit Credit (a) Balance 490,752 (b) 81,792 408,960 Balance 9,040 (c) 762,000 Balance 37,000 (d) Finished Goods Debit Credit 666,000 305,500 (c) 762,000 91,500 Balance 133,000 | (b) Balance 408,960 53,000 Cost of Goods Sold) Debit Credit (d) 666,000 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 Finished Goods, ending Cost of Goods Sold Overhead applied $ 25,440 63,840 319,680 $ 408,960 For example, of the $53,000 ending balance in work in process, $25,440 was applied overhead. Required: 1. Identify reasons for entries (a) through (d). 2. Assume underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.