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) 506,880 (b) 422,400

Bal. 84,480

Work in Process

Bal. 2,600 (c) 790,000

330,000

95,000

(b) 422,400

Bal. 60,000

Finished Goods

Bal. 30,000 (d) 680,000

(c) 790,000

Bal. 140,000

Cost of Goods Sold

(d) 680,000

The overhead that had been applied to production during the year is distribution among Work in Process, Finished Goods,and Cost of Goods Sold as of the end of the year as follows:

Work in process, ending $ 28,800

Finished Goods. ending 67,200

Cost of Good Sold 326,400

Overhead applied $ 422,400

For example, or the $60,000 ending balance in work in process, $28,800 was overhead that had been applied during the year.

Required:

1. Identify reasons for entries (a) through (d) - (No need to Answer)
2. Assume that underapplied or overapplied overhead is closed to cost of Good Sold, Prepare necessary Journal entry.(No need to Answer)
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.

(I am very interested with answers on required 3)