The Lahn Company Produces and Sells a Single Product Actual Cost and Usage Figures for the Past Month Follow

question 21

Essay

The Lahn Company produces and sells a single product.Standards have been established for the product as follows:
$\begin{array}{|l|l|}\hline \text { Direct Materials } & 5 \mathrm{kgs} @ \$ 3.50 / 1 \mathrm{~b} .=\$ 17.50 / \text { unit } \\\hline \text { Direct Labour } & 3 \mathrm{hrs} @ \$ 5.50 / \mathrm{hr}=\$ 16.50 / \text { unit } \\\hline\end{array}$
Actual cost and usage figures for the past month follow:
$\begin{array}{|l|r|}\hline \text { Units Produced } & 750 \\\hline \text { Direct Materials Used } & 4,000 \text { kilograms } \\\hline \text { Direct Materials Purchased } & \$ 14,400(4,500 \mathrm{kgs}) \\\hline \text { Direct Labour Cost } & \$ 11,200(2,000 \mathrm{hrs}) \\\hline\end{array}$
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 labour cost.

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Definitions:

Oedipus Complex

A Freudian theory describing a child's feelings of desire for their opposite-sex parent and jealousy towards the same-sex parent.

Latency Period

A phase in psychosexual development, occurring roughly between the ages of six and puberty, when sexual urges are repressed or dormant.

Freud's Theory

A set of psychoanalytic theories developed by Sigmund Freud, emphasizing unconscious conflict, stages of sexual development, and the structure of personality (id, ego, and superego).

Trait Theories

A group of theories that focus on the identification and measurement of specific personality characteristics and patterns of behavior.