Question

Larned Corporation recorded the following transactions for the just completed month. a. $89,000 in raw materials were purchased on account. b. $87,000 in raw materials were used in production. Of this amount, $79,000 was for direct materials and the remainder was for indirect materials c. Total labor wages of $111,500 were paid in cash. Of this amount, $104,100 was for direct labor and the remainder was for indirect labor. d. Depreciation of $197,000 was incurred on factory equipment. Required: Record the above transactions in journal entries. (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 < 1 2 3 4 $89,000 in raw materials were purchased on account. < Prev 4 of 9 Next >

Answer 1

Transaction	Accounts Titles and explanation	Debit (in $ )	Credit (in $ )
a.	Raw materials	$ 89,000
	Accounts payable		$ 89,000
	(To record the raw materials purchased on account )
b.	Work in process	$ 79,000
	Manufacturing overhead	$ 8,000
	Raw materials		$ 87,000
	(To record the raw materials used in Production )
c.	Work in process	$ 104,100
	Manufacturing overhead	$ 7,400
	Cash (or) Wages payable		$ 111,500
	(To record the wages paid )
d.	Manufacturing Overhead	$ 197,000
	Accumulated Depreciation Equipment		$ 197,000
	(To record the Depreciation incurred on Equipment )