The following information is taken from the accounts of FasGrow Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year.

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 . . . . . . . $ 32,800
Finished Goods, ending . . . . . . . . 41,000
Cost of Goods Sold . . . . . . . . . . . 336,200
Overhead applied . . . . . . . . . . . . . $410,000
For example, of the $80,000 ending balance in Work in Process, $32,800 was overhead that had been applied during the year.

Required:
1. Identify the reasons for entries (a) through (d).
2. Assume that the company closes any balance in the Manufacturing Overhead account directly to Cost of Goods Sold. Prepare the necessary journal entry.
3. Assume instead that the company allocates any balance in the Manufacturing Overhead account to the other accounts in proportion to the overhead applied during the year that is in the ending balance in each account. Prepare the necessary journal entry, with supportingcomputations.

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Manufacturing Overhead Work in Process (a) 380,000 b)..._ 410,000 00010,000 Bal 105,000 (c) 760,000 Bal. 30,000 210,000 115,000 410,000 80,000 Bal, Finished Goods Cost of Goods Sold Bal 10,000) (760,000 Bal 100,000 820,000 820,000