The Oregon Company Produces and Sells a Single Product Required:
Prepare Journal Entries to Record:
A

Essay

The Oregon Company produces and sells a single product. Standards have been established for the product as follows:
Direct materials: 5 pounds @ $3.50 per pound = $17.50
Direct labor: 3 hours @ $5.50 per hour = $16.50
Actual cost and usage figures for the past month follow:
$$\begin{array} { l c } \text { Units produced } & 750 \\\text { Direct materials used } & 4,000 \text { pounds } \\\text { Direct materials purchased (4,500 pounds) } & \$ 14,400 \\\text { Direct labor cost (2,000hours) } & \$ 11,200\end{array}$$
Required:
Prepare journal entries to record:
a. The purchase of raw materials.
b. The usage of raw materials in production.
c. The incurrence of direct labor cost.