Question

Larned Corporation recorded the following transactions for the just completed month. a. $71,000 in raw materials were purchased on account b. $69,000 in raw materials were used in production. Of this amount, $60,000 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $119,000 were paid in cash. Of this amount, $101,900 was for direct labor and the remainder was for indirect labor. d. Depreciation of $192,000 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.) View transaction list Journal entry worksheet < 1 4 $71,000 in raw materials were purchased on account.

Answer 1

Journal entries

Transaction	General journal	Debit	Credit
a.	Raw materials inventory	$71,000
	Accounts payable		$71,000
b.	Work in process inventory	$60,000
	Manufacturing overhead	$9,000
	Raw materials inventory		$69,000
c.	Work in process inventory	$101,900
	Manufacturing overhead	$17,100
	Cash		$119,000
d.	Manufacturing overhead	$192,000
	Accumulated depreciation- Equipment		$192,000