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 Credit Debit (a) Balance 84,096 504,576 (b) Cost of Goods Sold Debit 678,000 Credit No 420,480 $ 28,320 66,720 325,440 $ 420,480 Balance Required 1 Required 2 Required 3 Event Debit (b) Balance Work in Process 3,520 (c) 326,500 94,500 420,480 59,000 Complete this question by entering your answers in the tabs below. Credit (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 Finished Goods, ending Cost of Goods Sold Overhead applied For example, of the $59,000 ending balance in work in process, $28,320 was overhead that had been applied during the year. Answer is not complete. General Journal 786,000 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. Finished Goods 31,000 (d) 786,000 139,000 Debit Balance (c) Balance 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.) Debit Credit Credit 678,000
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 Credit Debit (a) Balance 84,096 504,576 (b) Cost of Goods Sold Debit 678,000 Credit No 420,480 $ 28,320 66,720 325,440 $ 420,480 Balance Required 1 Required 2 Required 3 Event Debit (b) Balance Work in Process 3,520 (c) 326,500 94,500 420,480 59,000 Complete this question by entering your answers in the tabs below. Credit (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 Finished Goods, ending Cost of Goods Sold Overhead applied For example, of the $59,000 ending balance in work in process, $28,320 was overhead that had been applied during the year. Answer is not complete. General Journal 786,000 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. Finished Goods 31,000 (d) 786,000 139,000 Debit Balance (c) Balance 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.) Debit Credit Credit 678,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text: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.
(a)
Balance
(d)
Manufacturing Overhead
Credit
Debit
504,576 (b)
84,096
Cost of Goods Sold
Debit
678,000
No
Credit
420, 480
Required 1 Required 2
Event
$ 28,320
66, 720
325, 440
$ 420,480
Balance
Debit
(b)
Balance
Required 3
Work in Process
Complete this question by entering your answers in the tabs below.
3,520 (c)
326,500
94,500
420, 480
59,000
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:
General Journal
Credit
Work in Process, ending
Finished Goods, ending
Cost of Goods Sold
Overhead applied
For example, of the $59,000 ending balance in work in process, $28,320 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.
Answer is not complete.
< Required 1
786,000
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.)
Debit
Required 3
Finished Goods
31,000 (d)
786,000
139,000
Debit
Balance
(c)
Balance
>
Credit
Credit
678,000
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