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 Required: Record the above transactions in journal entries.
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 Required: Record the above transactions in journal entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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EXERCISE 3–4 Prepare
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
Required:
Record the above transactions in journal entries.
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