Exercise 3-1 Prepare Journal Entries [LO3-1]

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

1. Total labor wages of $126,000 were paid in cash. Of this amount, $101,900 was for direct labor and the remainder was for indirect labor.

(account payable, wages payable are wrong)

Work in process Manufacturing overhead Accounts payable 101,900 24,100 126,000