I Need Confirmation that Number 2 is correct please. Thank you!

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) 367,000		(b) 445,000		Bal. 104,500		(c) 794,800
				210,800
		Bal. 78,000		115,000
				(b) 445,000
				Bal. 80,500

Finished Goods

Cost of Goods Sold

Bal. 146,000		(d) 842,800		(d) 842,800
(c) 794,800
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	$	44,500
Finished goods, ending		89,000
Cost of goods Sold		311,500
Overhead applied	$	445,000

For example, of the $80,500 ending balance in work in process, $44,500 was overhead that had been applied during the year.

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

Entry	Reason
(a)	Actual manufacturing overhead costs for the year.
(b)	Overhead cost applied to work in process for the year.
(c)	Cost of goods manufactured for the year.
(d)	Cost of goods sold for the year.

2.

Assume that the company closes any balance in the manufacturing overhead account directly 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.)

Journal Entry Worksheet

Record the adjustment of manufacturing overhead account to COGS.

Event

General Journal

Debit

Credit

1	Manufacturing overhead	48,000
	Cost of goods sold		48,000

*Enter debits before credits