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

Work in Process

(a) 460,000		(b) 390,000		Bal. 15,000		(c) 710,000
				260,000
Bal. 70,000				85,000
				(b) 390,000
				Bal. 40,000

Finished Goods

Cost of Goods Sold

Bal. 50,000		(d) 640,000		(d) 640,000
(c) 710,000
Bal. 120,000

The overhead that had been applied to production during the year is distributed among the ending balances in the accounts as follows:

Work in process, ending	$	19,500
Finished goods, ending		58,500
Cost of goods Sold		312,000
Overhead applied	$	390,000

For example, of the $40,000 ending balance in work in process, $19,500 was overhead that had been applied during the year.

1.Assume that the company closes any balance in the manufacturing overhead account directly to cost of goods sold. Prepare the necessary journal entry