Question

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

1. $88,000 in raw materials were purchased on account.
2. $86,000 in raw materials were used in production. Of this amount, $76,000 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $108,500 were paid in cash. Of this amount, $103,500 was for direct labor and the remainder was for indirect labor.
4. Depreciation of $198,000 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.)

Answer 1

No	Account	Debit	Credit
1	Raw materials inventory	88,000
	Accounts Payable		88,00
2	Work in Process Inventory	76,000
	Manufacturing overhead	10,000
	Raw materials inventory		86,000
3	Work in Process Inventory	108,500
	Manufacturing overhead		103,500
	Wages payable		5,000
4	Manufacturing overhead	198,000
	Accumulated Depreciation		198,000