(Solved): Exercise 3-8 (Algo) Applying Overhead; Journal Entries; Disposing of Underapplied o ...

Exercise 3-8 (Algo) 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. The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost Goods Sold as of the end of the year as follows: For example, of the $$\$43,000$$ ending balance in work in process, $$\$20,640$$ 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 proportionálly to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry. 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. Identify reasons for entries (a) through (d). Requlred: 1. Identfy reasons for entries (a) through (d). 2. Assume that the underapplled or overapplled overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume that the underapplled 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. Assume that the underapplied or overapplied overhead is closed to 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.) Journal entry worksheet Record the adjustment of manufacturing averhead account to COGS. Notel Enter debits before credits. Requlred: 1. Identify reasons for entries (a) through (d). 2. Assume that the underapplled 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. 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. (If no entry is required for a transaction/event, select "No joumal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet Record the allocation of any balance in the manufacturing overhead account to other accounts. Note: Enter debits before credits.