Exercise $3-1($Algo$)$ Prepare Journal Entries $[$LO$3-1]$

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

Purchased $$86,000$ of raw materials on account.

$$84,000$ in raw materials were used in production. Of this amount, $$74,000$ was direct materials and the remainder was indirect materials.

Paid employees $$116,500$ cash. Of this amount, $$104,200$ was direct labor and the remainder was indirect labor.

Depreciation of $$191,000$ was incurred on factory equipment.Journal entry worksheet

$$86,000$ in raw materials were purchased on account.

Note: Enter debits before credits.

$1.$$$86,000$ in raw materials were purchased on account.

$2.$$$84,000$ in raw materials were used in production. Of this amount, $$74,000$ was for direct materials and the remainder was for indirect materials.

$3.$ Total labor wages of $$116,500$ were paid in cash. Of this amount, $$104,200$ was for direct labor and the remainder was for indirect labor.

$4.$ Depreciation of $$191,000$ was incurred on factory equipment.Journal entry worksheet

$$86,000$ in raw materials were purchased on account.

Note: Enter debits before credits.