Mirror Lake Corporation Recorded the Following Transactions for the Just

question 142

Essay

Mirror Lake Corporation recorded the following transactions for the just completed month:
1. $60,000 in raw materials were purchased on account.
2. $51,000 in raw materials were requisitioned for use in production. Of this amount, $42,000 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $92,000 were incurred and paid. Of this amount, $81,000 was for direct labor and the remainder was for indirect labor.
4. Additional manufacturing overhead cost of $155,000 were incurred. All were on account.
Required:
Record the above transactions in journal entries.

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Definitions:

Debit Card

A payment card that deducts money directly from a consumer’s checking account to pay for purchases.

Checking Account

A type of bank account that allows for easy access to funds for daily transactions through checks, debit cards, or electronic means.

M1

A category of the money supply that includes all physical currency, demand deposits, traveler's checks, and other checkable deposits.

U.S. Treasury

The federal department responsible for managing government revenue, including producing currency, managing national accounts, and administering public finance.