Larney Corporation uses process costing. A number of transactions that occurred in June are listed below. 1.) Raw materials that cost $39,300 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials. 2.) Direct labor costs of $37,300 are incurred, but not yet paid, in the Mixing Department. 3.) Manufacturing overhead of $43,300 is applied in the Mixing Department using the department's predetermined overhead rate. 4.) Units with a carrying cost of $113,300 finish processing in the Mixing Department and are transferred to the Drying Department for further processing. 5.) Units with a carrying cost of $144,800 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse. 6.) Finished goods with a carrying cost of $139,300 are sold. Required: a.) Prepare journal entries for each of the transactions listed above. (Omit the "$" sign in your response.) (6 total entries required)
Larney Corporation uses process costing. A number of transactions that occurred in June are listed below. 1.) Raw materials that cost $39,300 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials. 2.) Direct labor costs of $37,300 are incurred, but not yet paid, in the Mixing Department. 3.) Manufacturing overhead of $43,300 is applied in the Mixing Department using the department's predetermined overhead rate. 4.) Units with a carrying cost of $113,300 finish processing in the Mixing Department and are transferred to the Drying Department for further processing. 5.) Units with a carrying cost of $144,800 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse. 6.) Finished goods with a carrying cost of $139,300 are sold. Required: a.) Prepare journal entries for each of the transactions listed above. (Omit the "$" sign in your response.) (6 total entries required)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Larney Corporation uses process costing. A number of
transactions that occurred in June are listed below.
1.) Raw materials that cost $39,300 are withdrawn from the
storeroom for use in the Mixing Department. All of these raw
materials are classified as direct materials.
2.) Direct labor costs of $37,300 are incurred, but not yet
paid, in the Mixing Department.
3.) Manufacturing overhead of $43,300 is applied in the
Mixing Department using the department's predetermined
overhead rate.
4.) Units with a carrying cost of $113,300 finish processing
in the Mixing Department and are transferred to the Drying
Department for further processing.
5.) Units with a carrying cost of $144,800 finish processing
in the Drying Department, the final step in the production
process, and
are transferred to the finished goods
warehouse.
6.) Finished goods with a carrying cost of $139,300 are sold.
Required:
a.) Prepare journal entries for each of the transactions listed
above. (Omit the "$" sign in your response.) (6 total entries
required)
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