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 Finished Goods Debit Credit Debit Credit Debit Credit (a) 460,000 (b) 390,000 Balance 15,000 (c) 710,000 Balance 50,000 (d) 640,000 Balance 78,000 260,000 (c) 710,000 85,000 Balance 120,000 (b) 390,000 Balance 40,000 Cost of Goods Sola Debit Credit (d) 640,000 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 $ 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. 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. Journal entry worksheet 1 ok ht Record the adjustment of manufacturing overhead account to COGS. mt ences Note: Enter debits before credits. Event General Journal Cost of goods sold Credit 1 Debit 70,000 Record entry Clear entry View general Journal Journal entry worksheet Record the allocation of any balance in the manufacturing overhead account to other accounts. Note: Enter debits before credits. Event General Journal Credit 1 Cost of goods sold Work in process Finished goods Manufacturing overhead Debit 56,000 3,500 10,500 Record entry Clear entry View general journal