Latta Company provided the following T-accounts for this year. Manufacturing Overhead 490,752 (b) 81,792 Debit (a)...

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Latta Company provided the following T-accounts for this year. Manufacturing Overhead 490,752 (b) 81,792 Debit (a) Balance Cost of Goods Sold Debit 666,000 Credit Credit Work in Process, ending Finished Goods, ending Cost of Goods Sold Overhead applied 408,960 Debit $ 25,440 63,840 319,680 $ 408,960 Balance (b) Balance Work in Process 9,040 (c) 305,500 91,500 408,960 53,000 Credit 762,000 Debit Balance (c) Balance For example, of the $53,000 ending balance in work in process, $25,440 was applied overhead. Finished Goods (d) The overhead applied to production is distributed among Work in Process, Finished Goods, and Cost of Goods Sold at the end of the year as follows: 37,000 (d) 762,000 133,000 Credit 666,000 Required: 1. Identify reasons for entries (a) through (d). 2. Assume underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry. Latta Company provided the following T-accounts for this year. Manufacturing Overhead 490,752 (b) 81,792 Debit (a) Balance Cost of Goods Sold Debit 666,000 Credit Credit Work in Process, ending Finished Goods, ending Cost of Goods Sold Overhead applied 408,960 Debit $ 25,440 63,840 319,680 $ 408,960 Balance (b) Balance Work in Process 9,040 (c) 305,500 91,500 408,960 53,000 Credit 762,000 Debit Balance (c) Balance For example, of the $53,000 ending balance in work in process, $25,440 was applied overhead. Finished Goods (d) The overhead applied to production is distributed among Work in Process, Finished Goods, and Cost of Goods Sold at the end of the year as follows: 37,000 (d) 762,000 133,000 Credit 666,000 Required: 1. Identify reasons for entries (a) through (d). 2. Assume underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.

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The provided image includes Taccounts for Manufacturing Overhead Work in Process Finished Goods and Cost of Goods Sold offering insights into the companys accounting records for manufacturing costs Ad... View the full answer