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
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 9PB: Mountain Tops applies overhead on the basis of direct labor hours and reports the following...
Related questions
Question
![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 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
(а)
414,720
Bal.
774,000
672,000
Bal.
(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 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49135e95-a06f-4e27-9f09-cfe790cb58be%2Febaa7bed-fa98-45aa-8daa-3f947892faad%2F7qwnak_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 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
(а)
414,720
Bal.
774,000
672,000
Bal.
(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 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
![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 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
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49135e95-a06f-4e27-9f09-cfe790cb58be%2Febaa7bed-fa98-45aa-8daa-3f947892faad%2Fpnor68x_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 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
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.)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning