Cost Accounting: Latta Company provided the following T-accounts for this year.

Latta Company provided the following T-accounts for this year.

Manufacturing Overhead
Debit Credit
(a) 506,880 (b) 422,400
Balance 84,480

Work in Process
Debit Credit
Balance 2,600 (c) 790,000
330,000
95,000
(b) 422,400
Balance 60,000

Finished Goods
Debit Credit
Balance 30,000 (d) 680,000
(c) 790,000
Balance 140,000

Cost of Goods Sold
Debit Credit
(d) 680,000
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 $ 28,800
Finished Goods, ending 67,200
Cost of Goods Sold 326,400
Overhead applied $ 422,400
For example, of the $60,000 ending balance in work in process, $28,800 was applied overhead.

Required:
Identify reasons for entries (a) through (d).
Assume underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
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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