Question

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

$81,000 in raw materials were purchased on account. $79,000 in raw materials were used in production. Of this amount, $70,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $113,500 were paid in cash. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.
Depreciation of $198,000 was incurred on factory equipment.

Required:
Record the above transactions in journal entries.

Answer 1

S/n Journal Entries Debit Credit

a Raw materials inventory $81,000

Accounts payable $81,000

b Work in process inventory $70,000

Manufacturing overhead $9,000

Raw materials inventory $79,000

c Work in process inventory $101,000

Manufacturing overhead $12,500

Cash $113,500

d Manufacturing overhead $198,000

Accumulated depreciation-Equipment $198,000