arned Corporation recorded the following transactions for the just completed month. a.$70,000 in raw materials were purchased on account. b.$68,000 in raw materials were requisitioned for use in production. Of this amount, $54,000 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $121,000 were incurred. Of this amount, $103,900 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $198,000 were incurred.

Question

Winston Berger

Business

31 January, 20:38

arned Corporation recorded the following transactions for the just completed month. a.$70,000 in raw materials were purchased on account. b.$68,000 in raw materials were requisitioned for use in production. Of this amount, $54,000 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $121,000 were incurred. Of this amount, $103,900 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $198,000 were incurred.

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Ezekiel West · Answer 1

raw materials 70,000 debit

accounts payable 70,000 credit

WIP inventory 54,000 debit

facotry overhead 14,000 debit

raw materials 68,000 credit

WIP Inventory 103,900 debit

factory ovehread 17,100 debit

wages payable 121,000 credit

Explanation:

We reocrd considering debit = credit

The indirect materials and labor are recorderd under factory overhead to latter compare with the amount of overhead applied.

these amount are the diference between total wages and totals materials materials requisitiion and the direct labor and direct materials respectively.