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 Work in Proces Manufacturing Overhead Finished Goods 50, 000 (d) 710, 000 120, 000 460, 000(b) 390, 000 Bal 710, 000 Bal. 640, 000 260, 000 85, 000 390, 000 40, 000 Bal 70, 000 Bal Bal Cost of Goods Sold 640, 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 $19, 500 58, 500 312, 000 $390, 000 Work in Process, ending Finished Goods, ending Cost of Goods Sold Overhead applied For example, of the $40,000 ending balance in work in process, $19,500 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 Reason Entry Record the adjustment of manufacturing overhead account to COGS Note: Enter debits before credits. Event General Journal Debit Credit Record the allocation of any balance in the manufacturing overhead account to other accounts. ote: Enter debits before credits. Debit Event General Journal Credit