Larned Corporation recorded the following transactions for the just completed month. $76,000 in raw materials were purchased on account.
$74,000 in raw materials were used in production. Of this amount, $64,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $107,500 were paid in cash. Of this amount, $100,000 was for direct labor and the remainder was for indirect labor.
Depreciation of $199,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
No Transaction General Journal Debit Credit
1 a. Raw materials 90,000
Accounts payable 90,000
2 b. Work in process
Manufacturing overhead
Raw materials
3 c. Work in process
Manufacturing overhead
Wages payable
4 d. Manufacturing overhead