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. Manufacturing Overhead Debit Credit LO) 499.963 (6) 416,640 Balance 83,328 Work in process Dobit Credit Balance 5,360) 278,000 319,500 93,500 (b) 416,640 Balance 57.000 Finished Goods Debit Credit Balance 33,000 (d) 674,000 (0) 278.000 Balance 137,000 Cast of Goods Sold Best Credit 674,000 (d) 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 $ 27,300 Finished Goods, andine 65,760 Cost of Goods Sold 323.520 Overhead applied $426,640 For example, of the $57000 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 3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepole the necessary journal entry Required 1 Required 2 Required 3 Identify reasons for entries (a) through (d). Entry Reason (0) Actual manufacturing overhead costs incurred for the year (b) Overhead cost applied to Work in Process for the year, (c) Cost of goods manufactured for the year (d) Cost of goods sold for the year, Reg Required 2 > 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 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

Answer & Explanation Solved by verified expert

See Answer