Question

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) 414,720 Bal. 82,944 (a) Bal. (b) Bal. Work in Process 6,280 (c) 774,000 316,000 93,000 414,720 56,000 Cost of Goods Sold 672,000 ces Finished Goods 34,000 (d) 672,000 774,000 136,000 Bal. (c) Bal. (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 $ 26, 65,280 322,560 $ 414,720 For example, of the $56,000 ending balance in work in process, $26,880 was overhead that had been applied during the year. Required:

Answer 1

1
a	Actual manufacturing overhead costs for the year.
b	Overhead cost applied to work in process for the year.
c	Cost of goods manufactured for the year.
d	Cost of goods sold for the year.
2
	General Journal	Debit	Credit
	Cost of goods sold	82944
	Manufacturing overhead		82944
3
	General Journal	Debit	Credit
	Work in process	5376		=82944*26880/414720
	Finished goods	13056		=82944*65280/414720
	Cost of goods sold	64512		=82944*322560/414720
	Manufacturing overhead		82944