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 Work in Process (a) 375,000 (b) 427,000 Bal. (c) 777,200 105,100 209,100 Bal. 52,000 115,800 427,000 Bal. 79,800 Cost of Goods Sold Finished Goods 153,000 (0) 777,200 Bal. 832,200 (0) 832,200 Bal. 98,000 The overhead that had been applied to production during the year is distributed among the ending balances in the accounts as follows: Work in process, ending Finished goods, ending Cost of goods Sold $ 34,160 68,320 324,520 Overhead applied $ 427.000 2. Assume that the company closes any balance in the manufacturing overhead account directly 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.) View transaction list Journal entry worksheet Record the adjustment of manufacturing overhead account to COGS. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

2)	Journal Entry
	General Journal					Debit	Credit
	Manufacturing overhead					52,000
	Cost of goods sold						52,000

Cash					Raw Materials
Beg.bal					Beg.bal
		76,300	a.		a.	76,300
		152,600	c.				72,800	b.
		125,800	d.
end bal		354,700			end bal	3,500
Work in process					finished goods
Beg.bal					Beg.bal
b.	66,200				f.	326,200
c.	133,300						326,200	g.
e.	126,700
		326,200	f.
end bal	0				end bal	0
Manufacturing overhead					cost of goods sold
Beg.bal					beg bal	0
b.	6,600				g.	326,200
c.	19,300				h.	25,000
d.	125,800
		126,700	e
		25,000	h
End bal	0				end bal	351,200
Adjusted cost of goods sold				351,200