The Lahn Company Produces and Sells a Single Product

Essay

The Lahn 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:
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.