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)	490,752	(b)	408,960
Bal.	81,792

Work in Process
Bal.	9,040	(c)	762,000
	305,500
	91,500
(b)	408,960
Bal.	53,000

Finished Goods
Bal.	37,000	(d)	666,000
(c)	762,000
Bal.	133,000

Cost of Goods Sold
(d)	666,000

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	$	25,440
Finished Goods, ending		63,840
Cost of Goods Sold		319,680
Overhead applied	$	408,960

For example, of the $53,000 ending balance in work in process, $25,440 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.