Larned Corporation recorded the following transactions for the just completed month. $72,000 in raw materials were purchased on account. $70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $106,000 were paid in cash. Of this amount, $102,200 was for direct labor and the remainder was for indirect labor. Depreciation of $193,000 was incurred on factory equipment.

Required:
Record the above transactions in journal entries.

Larned Corporation

Journal Entries

Sr. No                   Account                     Debit                  Credit

1                          Materials                     $72,000

                     Accounts Payable                                      $72,000

$72,000 in raw materials were purchased on account.

2                   Work in Process              $62,000

                     Materials  Inventory                                $62,000

$70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials

3                 Manufacturing Overheads  $8000

                      Materials Inventory                                  $ 8000

$70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials.

4                Work In Process               $ 102,000

                    Payroll ( Direct Labor )                            $102,000

$102,200 was for direct labor

5                  Manufacturing Overheads   $3800

                    Payroll (Indirect  Labor)                               $3800

Total labor wages of $106,000 were paid in cash. Of this amount, $102,200 was for direct labor and the remainder was for indirect labor.

6                Depreciation                     $193,000

                     Factory Overhead Control Account        $193,000

Depreciation of $193,000 was incurred on factory equipment.

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.