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.
The overhead that had been applied to production during the year is distributed among the ending balances in the accounts as follows:
For example, of the 40,000 ending balance in Work in Process, 19,500 was overhead that had been applied during the year.
(a) Identify reasons for entries (a) through (d).