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 Overhead
(a)	476,928	(b)	397,440
Bal.	79,488

Work in Process
Bal.	14,560	(c)	738,000
	284,500
	88,500
(b)	397,440
Bal.	47,000

Finished Goods
Bal.	43,000	(d)	654,000
(c)	738,000
Bal.	127,000

Cost of Goods Sold
(d)	654,000

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	$	22,560
Finished Goods, ending		60,960
Cost of Goods Sold		313,920
Overhead applied	$	397,440

For example, of the $47,000 ending balance in work in process, $22,560 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.

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

Entry	Reason
(a)
(b)
(c)
(d)

Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

• Record the adjustment of manufacturing overhead account to COGS.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1

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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

Journal entry worksheet

• Record the allocation of any balance in the manufacturing overhead account to other accounts.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1