Question

A Anime Gmail Youtube University Alban. Chapter 3A Graded Homework O - Cro s s Help Save & Exh Submit Check my work Exercise 3-1 Prepare Journal Entries (LO3-1) Larned Corporation recorded the following transactions for the just completed month 02:25:40 a. $84,000 in raw materials were purchased on account. b. $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. C. Total labor wages of $123,500 were paid in cash. Of this amount. $103,100 was for direct labor and the remainder was for indirect Book Labor. d. Depreciation of $194,000 was incurred on factory equipment. sk ences 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 2 3 $84,000 in raw materials were purchased on account. Note: Enter debits before credits. < Prev 1 of 4 !! Next >

Answer 1

Solution

Larned Corporation

Transaction	Account Titles and Explanation	Debit	Credit
a	Raw Materials Inventory	$84,000
	Accounts Payable		$84,000
	(To record purchase of raw materials on account)
b	Work in Process Inventory	$74,000
	Manufacturing Overhead	$8,000
	Raw Materials Inventory		$82,000
	(To record issue of materials to production)
c	Work in Process Inventory	$103,100
	Manufacturing Overhead	$20,400
	Cash		$123,500
	(To record payment of direct and indirect labor)
d	Manufacturing Overhead	$194,000
	Depreciation Expense - Factory Equipment		$194,000
	(To record depreciation on factory equipment)