Question

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

1. $89,000 in raw materials were purchased on account.
2. $87,000 in raw materials were used in production. Of this amount, $78,000 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $128,000 were paid in cash. Of this amount, $104,100 was for direct labor and the remainder was for indirect labor.
4. 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.)
Journal entry worksheet < 1 2 4 $89,000 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

Transaction	Particulars	Debit	Credit
a	Raw Material A/c	89000
	To Bank A/c		89000
	( Being Raw Material Purchased )
b	Work in Process A/c	78000
	Manufacturing Overhead A/c	9000
	To Raw Material A/c		87000
	( Being  raw materials were used in production)
c	labour Wages A/c	104100
	manufactring Overhead A/c	23900
	To Cash A/c		128000
	(Being Wages Paid)
d	Manufacturing Overhead A/c	197000
	To Accumulated Depriciation on factory equipment. A/c		197000
	( Being Depreciation was incurred on factory equipment.)