Requirement 3 for :

The whole problem for:

Exercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead [LO3-1, LO3-2, LO3-4) 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 504,576 (b) 420, 480 Bal. 84,096 Bal. Work in Process 3,520 (C) 786,000 326,500 94,500 420, 480 59,000 Bal. (c) Bal. Finished Goods 31,000 (d) 678,000 786,000 139,000 (b) Bal. Cost of Goods Sold 678,000 (d) 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 Finished Goods, ending Cost of Goods Sold Overhead applied $ 28,320 66, 720 325,440 $ 420, 480 For example of the $59,000 ending balance in work in process, $28,320 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. Complete this question by entering your answers in the tabs below. Required i Required 2 Required 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 joumal 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 View journal entry worksheet No Event Debit Credit 1 1 General Journal Work in process Finished goods Cost of goods sold Manufacturing overhead 5,668 13,346 65,090 84,096