Question

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. 25 Manufacturing Overhead (a) 504,576 (b) 420,480 Bal. 84,096 Work in Process Finished Goods points 3,520 (c) 786,000 326,500 94,500 (b) 420,480 Bal. 59,000 Bal. 31,000 (d) 678,000 Bal 786,000 (c) Bal.139,000 еВook Cost of Goods Sold (d) 678,000 Hint 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: Print Work in Process, $ 28,320 ending Finished Goods, ending Cost of Goods Sold 325,440 References 66,720 Overhead applied $420,480 For example, of the $59,000 ending balance in work in process, $28,320 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 Required Required 1 2 3 Identify reasons for entries (a) through (d). Entry (a) Reason (b) (C) (d) Required 1 Required 2> Hint For example, of the $59,000 ending balance in work in process, $28,320 was overhead that had been applied during the year Print Required 1. Identify reasons for entries (a) through (d). Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary ior References 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 Required Required 2 1 Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less View transaction list Journal entry worksheet 1 Record the adjustment of manufacturing overhead account to COGS Note: Enter debits before credits. General Journal Event Debit Credit View general journal Record entry Clear entry Required 3 Required 1 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 Required Required 1 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Show less A View transaction list Journal entry worksheet 1 Record the allocation of any balance in the manufacturing overhead account to other accounts. Note: Enter debits before credits. Credit Event General Journal Debit 1 Record entry Clear entry View general journal

Answer 1

1)
(a)	Actual manufacturing cost for the year
(b)	Manufacturing overhead applied to Work in process
( c )	Cost of goods manufactured for the year
(d)	cost of goods sold for the year
2)	Journal Entry
	General Journal					Debit	Credit
	Cost of goods sold					84,096
	Manufacturing overhead						84,096
3)	Work in process					5664
	Finished goods					13344
	cost of goods sold					65088
	manufacturing overhead						84,096
		percentage			percent
		Work in process		28,320	7%
		finished goods		66,720	16%
		cost of goods sold		325,440	77%
		total		420,480	100%