90.2K

Verified Solution

Link Copied!

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. Hanufacturing Overhead Bal. 81,792 Work in Process 9,840 (c) 762,000 305,500 91.500 488, 960 53,000 Bal. (c) Bal. Finished Goods 37,000 (d) 666,000 762,000 133,880 (b) Bal. (d) Cost of Goods Sold 666,000 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 $ 25,440 63,840 319,680 $ 408,960 For example, of the $53,000 ending balance in work in process, $25.440 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 1 Required 2 Required 3 Identify reasons for entries (a) through (d)

Answer & Explanation Solved by verified expert

See Answer