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

(a) 380,000		(b) 400,000		Bal. 105,600		(c) 749,800
				209,300
		Bal. 20,000		115,700
				(b) 400,000
				Bal. 80,800

Finished Goods

Cost of Goods Sold

Bal. 156,000		(d) 807,800		(d) 807,800
(c) 749,800
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	$	24,000
Finished goods, ending		48,000
Cost of goods Sold		328,000
Overhead applied	$	400,000

For example, of the $80,800 ending balance in work in process, $24,000 was overhead that had been applied during the year.

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

2.	Assume that the company closes any balance in the manufacturing overhead account directly to cost of goods sold. Prepare the necessary journal entry.