Exercise 3-1 (Algo) Prepare Journal Entries [LO3-1] Larned Corporation recorded the following transactions for the just completed month. a. $75,000 in raw materials were purchased on account. b. $73,000 in raw materials were used in production. Of this amount, $59,000 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $122,000 were paid in cash. Of this amount, $101,100 was for direct labor and the remainder was for indirect labor. d. Depreciation of $198,000 was incurred on factory equipment.