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. Hanufacturing Overhead Debit 10) Balance 460,000 (b) 70,000 Cost of Goods Sold Debit Credit (d) 640,000 Mork in Process Finished Goods Credit Debit Credit Debit Credit 390,000 15,000 (c) Balance 260,000 Balance 710,000 (e) 50,000 (d) 710,000 640,000 85,000 Balance 120,000 (b) 390,000 Balance 40,000 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 $19,500 58,500 312,000 $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. 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.