Latta Company provided the following T-accounts for this year. Manufacturing Overhead Debit (a) Balance 460,000 (b)...

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Latta Company provided the following T-accounts for this year. Manufacturing Overhead Debit (a) Balance 460,000 (b) 70,000 Work in Process Finished Goods Credit Debit Credit Debit Credit 390,000 Balance 15,000 (c) 710,000 260,000 Balance (c) 50,000 (d) 710,000 640,000 85,000 Balance 120,000 (b) Balance 390,000 40,000 Cost of Goods Sold Debit Credit (d) 640,000 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: Work in Process, ending Finished Goods, ending Cost of Goods Sold Overhead applied $ 19,500 58,500 312,000 $ 390,000 For example, of the $40,000 ending balance in work in process, $19,500 was applied overhead. 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. Journal entry worksheet 1 Record the allocation of any balance in the manufacturing overhead account to other accounts. Note: Enter debits before credits. Event General Journal Debit Credit a. Work in process Finished goods Cost of goods sold Manufacturing overhead 70,000 Record entry Clear entry View general journal Latta Company provided the following T-accounts for this year. Manufacturing Overhead Debit (a) Balance 460,000 (b) 70,000 Work in Process Finished Goods Credit Debit Credit Debit Credit 390,000 Balance 15,000 (c) 710,000 260,000 Balance (c) 50,000 (d) 710,000 640,000 85,000 Balance 120,000 (b) Balance 390,000 40,000 Cost of Goods Sold Debit Credit (d) 640,000 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: Work in Process, ending Finished Goods, ending Cost of Goods Sold Overhead applied $ 19,500 58,500 312,000 $ 390,000 For example, of the $40,000 ending balance in work in process, $19,500 was applied overhead. 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. Journal entry worksheet 1 Record the allocation of any balance in the manufacturing overhead account to other accounts. Note: Enter debits before credits. Event General Journal Debit Credit a. Work in process Finished goods Cost of goods sold Manufacturing overhead 70,000 Record entry Clear entry View general journal