Exercise 3-1 Prepare Journal Entries [LO3-1] Larned Corporation recorded the fol
ID: 2331998 • Letter: E
Question
Exercise 3-1 Prepare Journal Entries [LO3-1] Larned Corporation recorded the following transactions for the just completed month. a $82,000 In raw materials were purchased on account b. $80,000 In raw materials were used in production. Of this amount, $73,000 was for direct materials and the remainder was for Indirect materials C. Total labor wages of $113.500 were paid in cash. Of this amount, S103,400 was for direct labor and the remainder was for indirect labor d. Depreciation of $196,000 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 fieid.) View transaction list Journal entry worksheet $80.000 in raw materials were used in production. Of this amount, $73,000 was for direct materials and the remainder was for indirect materials.Explanation / Answer
Description
Debit
Credit
a.
Raw material inventory
$82,000
Accounts payable
$82,000
(Raw material purchased)
b.
Work in process inventory
$73,000
Manufacturing overhead
$7,000
Raw material inventory
$80,000
(Raw material issued & used in production)
c.
Work in process inventory
$103,400
Manufacturing overhead
$10,100
Cash
$113,500
(Labor cost paid)
d.
Depreciation expense
$196,000
Accumulated Depreciation
$196,000
(Depreciation accounted for the month)
Description
Debit
Credit
a.
Raw material inventory
$82,000
Accounts payable
$82,000
(Raw material purchased)
b.
Work in process inventory
$73,000
Manufacturing overhead
$7,000
Raw material inventory
$80,000
(Raw material issued & used in production)
c.
Work in process inventory
$103,400
Manufacturing overhead
$10,100
Cash
$113,500
(Labor cost paid)
d.
Depreciation expense
$196,000
Accumulated Depreciation
$196,000
(Depreciation accounted for the month)
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