Question

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

1. $78,000 in raw materials were purchased on account.
2. $76,000 in raw materials were used in production. Of this amount, $64,000 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $121,000 were paid in cash. Of this amount, $103,400 was for direct labor and the remainder was for indirect labor.
4. Depreciation of $197,000 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

Journal Entries Transactions General Journal a. Raw Material Accounts Payable (Raw Material were purchased) Debit ($) Credit($) 78000 78000 b. 64000 12000 760001 Work in Process Manufacturing Overhead Raw Materials (Being $76000 in Raw material were requisitioned for use in production. Of this amount $64000 was for Direct Materials and remaindar was for indirect materials) c. 103400 Work in Process Manufacturing Overhead Selling & Administrative Expenses 17600 121000 (Being Indirect labor wages of $121000 were incurred. Of this amount, $103400 was for direct labour and the remaindar was for indirect labor) d. 197000 197000 Manufacturing Overhead Accumulated Depreciation (Being Depreciation of $197000 was incurred on factory equipment)