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30 January, 02:29

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

$72,000 in raw materials were purchased on account. $70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $106,000 were paid in cash. Of this amount, $102,200 was for direct labor and the remainder was for indirect labor. Depreciation of $193,000 was incurred on factory equipment.

Required:

Record the above transactions in journal entries.

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  1. 30 January, 04:20
    0
    Larned Corporation

    Journal Entries

    Sr. No Account Debit Credit

    1 Materials $72,000

    Accounts Payable $72,000

    $72,000 in raw materials were purchased on account.

    2 Work in Process $62,000

    Materials Inventory $62,000

    $70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials

    3 Manufacturing Overheads $8000

    Materials Inventory $ 8000

    $70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.

    4 Work In Process $ 102,000

    Payroll (Direct Labor) $102,000

    $102,200 was for direct labor

    5 Manufacturing Overheads $3800

    Payroll (Indirect Labor) $3800

    Total labor wages of $106,000 were paid in cash. Of this amount, $102,200 was for direct labor and the remainder was for indirect labor.

    6 Depreciation $193,000

    Factory Overhead Control Account $193,000

    Depreciation of $193,000 was incurred on factory equipment.
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