Larned Corporation recorded the following transactions for the just completed month. a. $80,000 in raw materials were purchased on account.
b. $71,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.
c. Total labor wages of $112,000 were paid in cash. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.
d. Depreciation of $175,000 was incurred on factory equipment.

Required:
Record the above transactions in journal entries.

Please see answers in explanation column

Explanation:

Journal entries for   Larned Corporation transactions for the just completed month.

a)To record purchase raw material

Account titles                                 Debit                     Credit

Raw materials inventory             $80,000  

        Accounts payable                                              $80,000  

b To record raw material used

Work in process inventory          $62,000  

Manufacturing overhead              $9,000        

       Raw materials inventory                                     $71,000  

C)   To record labor paid

Work in process inventory       $101,000

Manufacturing overhead         $11,000

        Cash                                                                 $112,000                                        

dTo record manufacturing overhead

Manufacturing overhead        $175,000  

   Accumulated depreciation-Equipment        $175,000  

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