Question

$80,000 in raw materials were purchased on account. $78,000 in raw materials were used in production. Of this amount, $68,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $126,500 were paid in cash. Of this amount, $104,200 was for direct labor and the remainder was for indirect labor. Depreciation of $194,000 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 field.)

Answer 1

Answer:

Explanation:

The journal entries are shown below:

1. Raw material A/c Dr $78,000

         To Accounts payable A/c  $78,000

(Being raw material purchased)

2. Work in progress A/c Dr              $68,000

   Manufacturing overhead A/c Dr $10,000

         To Raw material A/c                                   $78,000

(Being raw material allocated)

3. Labor wages A/c Dr  $126,500

        To Cash A/c                                 $126,500

(Being labor wages are paid in cash)

4. Work in progress A/c Dr              $104,200

   Manufacturing overhead A/c Dr $22,300

         To Labor wages payable A/c                                   $126,500

(Being labor wages are allocated)

5. Depreciation A/c $194,000

      To Factory Equipment          $194,000

(Being depreciation is charged on factory equipment)