The following information is taken from the accounts of Latta Company

Accounting Sep 07, 2020

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) 481,536 (b) 401,280 Bal. 80, 256 Bal. Work in Process 12,720 (c) 746,000 291,500 89,500 401,280 49,000 Bal. (c) Bal. Finished Goods 41,000 (d) 658,000 746,000 129,000 (b) Bal. (d) Cost of Goods Sold 658,000 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 $ 23,520 61,920 315, 840 $ 401,280 For example, of the $49,000 ending balance in work in process, $23,520 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). Reason Entry (a) (b) (c) (d)
Required 1 Required 2 Required 3 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.) View transaction list Journal entry worksheet Record the adjustment of manufacturing overhead account to COGS. Note: Enter debits before credits. Event General Journal Debit Credit 1
Required 1 Required 2 Required 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.) View transaction list Journal entry worksheet Record the allocation of any balance in the manufacturing overhead account to other accounts. Note: Enter debits before credits Event General Journal Debit Credit 1

Expert Solution

1.
a. Manufacturing Overhead incurred
b. Manufacturing Overhead applied
c. Cost of Goods Completed / Manufactured
d. Cost of Goods Sold

Account Titles	Debit	Credit
Cost of Goods Sold	$ 80,256
Manufacturing Overhead		$ 80,256

Account Titles	Debit	Credit
Work in Process	$ 4,815
Finsihed Goods	$ 12,038
Cost of Goods Sold	$ 63,402
Manufacturing Overhead		$ 80,256

Alternatively due to rounding off error

Account Titles	Debit	Credit
Work in Process	$ 4,704
Finsihed Goods	$ 12,384
Cost of Goods Sold	$ 63,168
Manufacturing Overhead		$ 80,256

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