Question

Larned Corporation recorded the following transactions for the just completed month.

1. $80,000 in raw materials were purchased on account.
2. $71,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $112,000 were paid in cash. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.
4. Depreciation of $175,000 was incurred on factory equipment.

Required:

Record the above transactions in journal entries

Answer 1

1 Credit Debit 80.000 S Transaction General journal Raw Materials Accounts Payable (Being Raw materials purchased on account recorded) S 80.000 S 62,000 9,000 Work in Process Manufacturing Overhead Raw Materials (Being raw materials used in production recorded) $ 71,000 S $ 101,000 11,000 Work in Process Manufacturing Overhead Cash Being labor charges paid recorded) S 112,000 $ 175,000 Manufacturing Overhead Accumulated Depreciation (Being depreciation expenses recorded) S 175,000