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)476,928(b)397,440Bal.79, 488 Work in ProcessBal.14,560(c)738,000 284,500 88,500 (b)397,440 Bal.47,000 Finished GoodsBal.43,000(d)654,000(c)738,000 Bal.127,000 Cost of Goods Sold(d)654,000 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$22,560Finished Goods, ending 60,960Cost of Goods Sold 313,920Overhead applied$397,440 For example, of the $47,000 ending balance in work in process, $22,560 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.