Mirror Lake Corporation Recorded the Following Transactions for the Just

question 88

Essay

Mirror Lake Corporation recorded the following transactions for the just completed month:
a.$60,000 in raw materials were purchased on account.b.$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.c.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.d.Additional manufacturing overhead cost of $155,000 were incurred.All were on account.equired:
Record the above transactions in journal entries.

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Definitions:

Accounts Payable

Accounts payable are amounts a company owes to suppliers for items or services purchased on credit; it is a current liability on the balance sheet.

Nominal Annual Cost

The cost of a product or service stated in current year prices without adjusting for inflation or deflation.

Trade Credit

A type of commercial financing where suppliers allow customers to purchase goods or services and pay for them at a later date.

Purchase Date

The date on which an asset or security was bought.