Question

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

a. $80,000 in raw materials were purchased on account.
b. $71,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.
c. Total labor wages of $112,000 were paid in cash. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.
d. Depreciation of $175,000 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.) 1 $80,000 in raw materials were purchased on account. 2 $71,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials. 3 Total labor wages of $112,000 were paid in cash. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor. 4 Depreciation of $175,000 was incurred on factory equipment $80,000 in raw materials were purchased on account. Note: Enter debits before credits. Transaction General Journal Debit Credit a. $71,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Total labor wages of $112,000 were paid in cash. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor. ote: Enter debits before credits. Transaction General Journal Debit Credit C. Depreciation of $175,000 was incurred on factory equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit d.

Answer 1

Larned Corporation

General Journal Entries:

Transactions Debit Credit

a. Raw materials $80,000

Accounts payable $80,000

To record the purchase of raw materials on account.

b. Work in Process $62,000

Manufacturing overhead 9,000

Raw materials $71,000

To record the transfer of materials to production and overheads.

c. Work in Process $101,000

Manufacturing overhead 11,000

Factory Wages $112,000

To record the transfer of factory wages to production and overheads.

d. Manufacturing overhead $175,000

Depreciation Expense $175,000

To record the transfer of depreciation expense to overheads.

Step-by-step explanation:

The general journal is used to initially record business transactions as they occur on a daily basis. It identifies the accounts involved in each transaction and the account to be debited and the one to be credited.