Exercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead(LO3-1, LO3-2, LO3-4]The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of thetransactions that affected those accounts during the year.Manufacturing Overhead497,664 (b)82,944|Work in Process6,280 (c)316,00093,000414,72056,000Finished Goods34,000 | (d)774,000136,000(а)414,720Bal.774,000672,000Bal.(c)Bal.Bal.(b)Bal.Cost of Goods Sold(d)672,000||The overhead that had been applied to production during the year is distriputed among Work in Process, Finished Goods, and Cost ofGoods Sold as of the end of the year as follows:Work in Process, endingFinished Goods, endingCost of Goods Sold$ 26,88065,280322,560$ 414,720Overhead applied For example, of the $56,000 ending balance in work in process, $26,880 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 ofGoods Sold. Prepare the necessary journal entry.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of GoodsSold. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the firstaccount field. Do not round intermediate calculations.)

Over-applied / Under-applied overhead = Total Overhead cost - Actual Overhead cost applied Overhead…

Exercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead [LO3-1, LO3-2, L03-4] 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 497,664 (b) 82,944 Work in Process 6,280 (c) 316,000 93,000 414,720 56,000 Finished Goods 34,000 (d) 774,000 136,000 (a) 414,720 Bal. 774,000 Bal. (c) Bal. 672,000 Bal. (b) Bal. Cost of Goods Sold (p). 672,000|| The overhead that had been applied to production during the year is distriputed 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 $ 26,880 65,280 322,560 $ 414,720 Overhead applied

Exercise 3-8 Applying Overhead; Journal Entries; Disposing of Underapplied or Overapplied Overhead [LO3-1, LO3-2, L03-4] 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 497,664 (b) 82,944 Work in Process 6,280 (c) 316,000 93,000 414,720 56,000 Finished Goods 34,000 (d) 774,000 136,000 (a) 414,720 Bal. 774,000 Bal. (c) Bal. 672,000 Bal. (b) Bal. Cost of Goods Sold (p). 672,000|| The overhead that had been applied to production during the year is distriputed 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 $ 26,880 65,280 322,560 $ 414,720 Overhead applied

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 9PB: Mountain Tops applies overhead on the basis of direct labor hours and reports the following...

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