Question

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

1. $72,000 in raw materials were purchased on account.
2. $70,000 in raw materials were used in production. Of this amount, $57,000 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $117,500 were paid in cash. Of this amount, $103,500 was for direct labor and the remainder was for indirect labor.
4. Depreciation of $199,000 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.)

Journal entry worksheet < 1 2 3 4 > $72,000 in raw materials were purchased on account. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal

Answer 1

Answer :-

Transaction	General Journal	Debit	Credit
a.	Raw material	$72,000
	Account payable		$72,000
	(To record raw materials were purchased on account )
b.	Work in process	$57,000
	Manufacturing overhead ($70,000 - $57,000)	$13,000
	Raw material		$70,000
	(To record raw material used in production)
c.	Work in process	$103,500
	Manufacturing overhead ($117,500 - $103,500)	$14,000
	Cash		$117,500
	(To record labor wages paid)
d.	Manufacturing overhead	$199,000
	Accumulated depreciation		$199,000
	(To record overhead)