Question

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

1. $84,000 in raw materials were purchased on account.
2. $82,000 in raw materials were used in production. Of this amount, $74,000 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $115,000 were paid in cash. Of this amount, $102,800 was for direct labor and the remainder was for indirect labor.
4. Depreciation of $193,000 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

Transaction	General Journal	Debit	Credit
a.	Raw materials	$84,000
	Accounts payable		$84,000
b.	Work in process	$74,000
	Manufacturing overhead	$8,000
	Raw materials		$82,000
c.	Work in process	$102,800
	Manufacturing overhead	$12,200
	Cash		$115,000
d.	Manufacturing Overhead	$193,000
	Accumulated Depreciation Equipment		$193,000