Question

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

1. $89,000 in raw materials were purchased on account.
2. $87,000 in raw materials were used in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $107,500 were paid in cash. Of this amount, $101,500 was for direct labor and the remainder was for indirect labor.
4. Depreciation of $191,000 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

	Particular	Debit ($)	Credit ($)
	Raw Material	$89,000
	Accounts payable		$89,000
	(To record purchase)
	Work in process	$72,000
	Manufacturing overhead	$15,000
	Raw material		$87,000
	(To record raw material used in production)
	Work in process	$101,500
	Manufacturing overhead	$6,000
	Cash or wages payable		$107,500
	(To record wages paid)
	Manufacturing overhead	$191,000
	Accumulated depreciation		$191,000
	(To record depreciation)