Reference no: EM132533813

Larney Corporation uses process costing. A number of transactions that occured in June are listed below.

1) Raw materials that cost $38200 are withdrawn from the storeroom for use in the Mixing department. All of these raw materials are classified as direct materials.

2) Direct Laboor costs of $36500 are incurred but not yet paid in the Mixing Department.

3) Manufacturing overhead of $42100 is applied in the Mixing Department using the department's predetermined overhead rate.

4) Units with a carrying cost of $112,400 finish processing in the Mixing department and are transferred to the Drying Department for further processing.

5) Units with a carrying cost of $143800 finish processing in the Drying Department the final step in the production process and are transferred to the finished goods warehouse.

6) Finished goods with a carrying cost of $138500 are sold.

Required:

Question 1: Prepare journal entries for each of the transaction listed above.