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) 479,232 (b) 399,360 Bal. 79,872 Work in Process Bal. 13,640 (c) 742,000 288,000 89,000 (b) 399,360 Bal. 48,000 Finished Goods Bal. 42,000 (d) 656,000 (c) 742,000 Bal. 128,000 Cost of Goods Sold (d) 656,000 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 $ 23,040 Finished Goods, ending 61,440 Cost of Goods Sold 314,880 Overhead applied $ 399,360 For example, of the $48,000 ending balance in work in process, $23,040 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.

Part 1:

a) We see that the actual Mfg OH is being debited with the amount incurred.

b) Work in Process Inventory  Debit (b) 399,360

Mfg OH  ( applied)   Credit (b) 399,360

c) CGS  debit   (c) 742,000

WIP  Credit     (c) 742,000

d) CGS  debit (d) 656,000

Finished Goods credit (d) 656,000

Part 2:

The  journal entry is

Cost of Goods Sold $79872  Debit

Factory Overhead  $ 79 872 Credit

Part 3:

Journal Entry

Work in Process, $ 24960 debit

Finished Goods, 66560 debit

Cost of Goods Sold     (11648) credit

Manufacturing Overheads $ 79872 credit

Explanation:

The given accounts are

Debit                       Credit          

(a) 479,232             (b) 399,360

Bal. 79,872                              

Debit                       Credit

Bal. 13,640        (c) 742,000

288,000

89,000

(b) 399,360                      

Bal. 48,000                        

Debit                  Credit

Bal. 42,000       (d) 656,000

(c) 742,000                          

Bal. 128,000                          

(d) 656,000

Part 1:

a) Actual manufacturing overhead

We see that the actual Mfg OH is being debited with the amount incurred.

b) Manufacturing overhead applied to Work in Process Inventory

Work in Process Inventory  Debit (b) 399,360

Mfg OH  ( applied)   Credit (b) 399,360

c) Cost of Goods Manufactured

CGS  debit   (c) 742,000

WIP  Credit     (c) 742,000

d) Cost of Goods Sold

CGS  debit (d) 656,000

Finished Goods credit (d) 656,000

Part 2:

The  actual overhead is $ 479232  and applied overhead is $399,360 which is less than actual overhead.

The  journal entry is

Cost of Goods Sold $79872  Debit

Factory Overhead  $ 79 872 Credit

To transfer under applied overhead to cost of goods sold.

Part 3:

We find the differences between actual and applied overheads and then pass the journal entry.

Work in Process, ending $ 23,040

Finished Goods, ending 61,440

Cost of Goods Sold 314,880        

Overhead applied $ 399,360

Work in Process, ending $ 48,000

Finished Goods, ending 128,000

Cost of Goods Sold         303,232    

Actual Overhead  $ 479,232        

Work in Process, ending =$ 48,000 -$ 23,040 =$ 24960

Finished Goods, ending= 128,000-61,440 = 66560

Cost of Goods Sold     =    303,232 -314,880 = (11648)

Journal Entry

Work in Process, $ 24960 debit

Finished Goods, 66560 debit

Cost of Goods Sold     (11648) credit

Manufacturing Overheads $ 79872 credit

answer; /// i believe its (bas design);

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

i hope this you! : )