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 Debit Credit (a) 506,880 (b) 422,400 Balance 84,480 Work in Process Debit Credit Balance 2,600 (c) 790,000 330,000 95,000 (b) 422,400 Balance 60,000 Finished Goods Debit Credit Balance 30,000 (d) 680,000 (c) 790,000 Balance 140,000 Cost of Goods Sold Debit Credit (d) 680,000 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 $ 28,800 Finished Goods, ending 67,200 Cost of Goods Sold 326,400 Overhead applied $ 422,400 For example, of 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). 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