The following information is taken from the accounts of Latt

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 urin in Finish 499,968 (b) 416,64 Bal. 5,360 (c) 778,000 Bal 33,0 (d) 674,000 Bal. 83,328 319, 500 93,500 416, 640 57,000 (c)778,000 Bal. 137,60 Bal. Cost of Goods Sold 674,000e The overhead that had been applied to production during the year is distributed among Work in Process Goods Sold as of the end of the year as follows Finished Goods Work in Process, ending Finished Goods, ending Cost of Goods Sold Overhead applied $ 27,360 65,760 323,520e $ 416,640 For example, of the $57,000 ending balance in work in process, $27.360 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

Solution

Required : 1

Required : 2

Required: 3

Entry	Reason
a.	Manufacturing Overheads Actually Incurred.
b.	Manufacturing Overhead Applied to Production
c.	Cost of Goods Completed and Transferred to Finished Goods Inventory from WIP
d.	Cost of Goods Transferred out of Finished Goods Inventory and Sold