Question

Lancaster Company recorded the following transactions for the just-completed month:

1. $45,300 in raw materials was purchased on account.
2. $126,500 in raw materials was requisitioned for use in production. Of this amount, $71,200 was for direct materials and the remainder was for indirect materials.
3. Total labour wages of $213,800 were incurred. Of this amount, $184,350 was for direct labour and the remainder was for indirect labour.
4. Additional manufacturing overhead costs of $191,250 were incurred.

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

No	Account and explanation	debit	credit
a	Raw material	45300
	Account payable		45300
	(To record purchase raw material)
b	Work in process	71200
	Manufacturing overhead (126500-71200)	55300
	Raw material		126500
	(To record raw material used)
c	Work in process	184350
	Manufacturing overhead	29450
	Wages payable		213800
	(To record wages)
d	Manufacturing overhead	191250
	Other overhead		191250
	(To record additional manufacturing overhead)