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 Overbead Debit Credit Work in Process Debit Finished Goods Credit Debit Credit (0) 504,576 (b) 420,480 Balance 84,096 Balance 3,520 (c) 786,000 326,500 94,500 Balance 31,000 (d) (c) 786,000 Balance 139,000 | 678,000 (b) 420,480 Balance 59,000 Cost of Goods Sold Debit Credit (d) 678,000 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 $ 28,320 66,720 325,440 $420,480 For example, of the $59,000 ending balance in work in process, $28,320 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.