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.

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:

For example, of the $$43,000$ ending balance in work in process,

$$20,640$ was overhead that had been applied during the year.

Required:

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

Assume that the underapplied or overapplied overhead is

closed to Cost of Goods Sold. Prepare the necessary journal entry.

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.