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 OverheadWork in Process

(a)357,000

(b)404,000

Bal.104,400

(c)752,400

209,500

Bal.47,000114,100

(b)404,000

Bal.79,600

Finished GoodsCost of Goods SoldBal.149,000

(d)803,400

(d)803,400

(c)752,400

Bal.98,000

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$32,320Finished goods, ending64,640Cost of goods Sold307,040

Overhead applied$404,000

For example, of the $79,600 ending balance in work in process, $32,320 was overhead that had been applied during the year.

Required:1.Identify the reasons for entries (a) through (d).