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 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.
Manufacturing Overhead
(a) 506,880 (b) 422,400
Bal. 84,480
Work in Process
Bal. 2,600 (c) 790,000
330,000
95,000
(b) 422,400
Bal. 60,000
Finished Goods
Bal. 30,000 (d) 680,000
(c) 790,000
Bal. 140,000
Cost of Goods Sold
(d) 680,000
The overhead that had been applied to production during the year is distribution among Work in Process, Finished Goods,and Cost of Goods Sold as of the end of the year as follows:
Work in process, ending $ 28,800
Finished Goods. ending 67,200
Cost of Good Sold 326,400
Overhead applied $ 422,400
For example, or the $60,000 ending balance in work in process, $28,800 was overhead that had been applied during the year.
Required:
-Identify reasons for entries (a) through (d) – (No need to Answer)
-Assume that underapplied or overapplied overhead is closed to cost of Good Sold, Prepare necessary Journal entry.(No need to Answer)
-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.
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