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)	486,144	(b)	405,120
Bal.	81,024

Work in Process
Bal.	10,880	(c)	754,000
	298,500
	90,500
(b)	405,120
Bal.	51,000

Finished Goods
Bal.	39,000	(d)	662,000
(c)	754,000
Bal.	131,000

Cost of Goods Sold
(d)	662,000

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	$	24,480
Finished Goods, ending		62,880
Cost of Goods Sold		317,760
Overhead applied	$	405,120

For example, of the $51,000 ending balance in work in process, $24,480 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.

QUESTION 2 AND 3 COMPLETE JOURNAL ENTRY WORKSHEET

SEE ATTACHED PICTURE

No Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select --- "No journal entry required" in the first account field.) Event General Journal Debit Credit Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) View transaction list 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 Debit Credit