EXERCISE 3–4 Prepare Journal Entries [LO3–4]Larned Corporation recorded the following transactions for the just completed month.$80,000 in raw materials were purchased on account.$71,000 in raw materials were requisitioned for use in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.Total labor wages of $112,000 were incurred. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.Additional manufacturing overhead costs of $175,000 were incurred.Manufacturing overhead is applied based on direct labor hours. The PDOR is $10 per DLH. 5,050 actual direct labor hours were incurred.Jobs totaling $105,000 were completed and transferred to finished goods.Jobs costing $85,000 were sold for $200,000 (2 entries)Sales salaries incurred on account were $15,000Required:Record the above transactions in journal entries.

Journal Entries No Particulars Debit Credit 1 Raw material a/c $80,000…

Answered: EXERCISE 3–4 Prepare Journal Entries…

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter27: Lean Principles, Lean Accounting, And Activity Analysis

Section: Chapter Questions

Problem 27.4CP

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EXERCISE 3–4 Prepare Journal Entries [LO3–4]

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

$80,000 in raw materials were purchased on account.
$71,000 in raw materials were requisitioned for use in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $112,000 were incurred. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.
Additional manufacturing overhead costs of $175,000 were incurred.
Manufacturing overhead is applied based on direct labor hours. The PDOR is $10 per DLH. 5,050 actual direct labor hours were incurred.
Jobs totaling $105,000 were completed and transferred to finished goods.
Jobs costing $85,000 were sold for $200,000 (2 entries)
Sales salaries incurred on account were $15,000