Question

Saved Hels Consider the following transactions for the just completed month. a. $88,000 in raw materials were purchased on account. b. $86,000 in raw materials were used in production. Of this amount, $77,000 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $121,000 were paid in cash. Of this amount $100,700 was for direct labor and the remainder was for indirect labor. d. Depreciation of $199,000 was incurred on factory equipment 30 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 < 1 2 3 4 $88,000 in raw materials were purchased on account. Note: Enter debits before credits. Transaction General Journal Debit Credit

Answer 1

No	ACCOUNT	Debit	Credit
A	Raw materials	88,000
	Accounts Payable		88,000
	(to record material purchases)
B	Work in Process Inventory	77,000
	Manufacturing overhead	9,000
	Raw materials		86,000
	(to record raw materials used)
C	Work in process inventory	100,700
	Manufacturing overhead	20,300
	Wages payable		121,000
	(to record labor costs)
D	Manufacturing overhead	199,000
	Accumulated Depreciation - Equipment		199,000
	(to record depreciation expense)