Larned Corporation recorded the following transactions for the just completed month. $74,000 in raw materials were purchased on account. $72,000 in raw materials were used in production. Of this amount, $57,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $122,000 were paid in cash. Of this amount, $104,000 was for direct labor and the remainder was for indirect labor. Depreciation of $195,000 was incurred on factory equipment.

Required:

Record the above transactions in journal entries.

Question

Business

Helen Flowers

15 September, 19:05

Larned Corporation recorded the following transactions for the just completed month. $74,000 in raw materials were purchased on account. $72,000 in raw materials were used in production. Of this amount, $57,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $122,000 were paid in cash. Of this amount, $104,000 was for direct labor and the remainder was for indirect labor. Depreciation of $195,000 was incurred on factory equipment.

Required:

Record the above transactions in journal entries.

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Answers (1)

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Abby Gentry · Answer 1

General Ledger Debit Credit

a. Raw Material 74,000

Accounts Payable 74,000

b. Work in progress 57,000

Manufacturing overhead 15,000

Raw Material 72,000

c. Work in progress 104,000

Manufacturing overhead 18,000

Salaries & Wages Payable 122,000

d. Manufacturing overhead 195,000

Accumulated depreciation 195,000