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: $$\begin{array} { | l | r | l | } \hline \text { Units produced } & 750 & \\\hline \text { Direct materials used } & 4,000 & \text { pounds } \\\hline \text { Direct materials purchased (4,500 } & \$ 14,400 & \\\text { pounds) } & & \\\hline \text { Direct labor cost (2,000 hours) } & \$ 11,200 & \\\hline\end{array}$$
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.