Prepare General Journal Entries to Record the Following Production Activities

question 99

Essay

Prepare general journal entries to record the following production activities for Oaks Manufacturing.
a. Purchased $82,000 of raw materials on credit.
b. Used $63,500 of direct materials in production.
c. Used $12,800 of indirect materials.

---

Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Flexibility

The ability of a system or organization to adapt to changes, variations, or unexpected circumstances without significant loss of functionality or efficiency.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Economic Factors

Variables and conditions affecting an economy’s performance, such as inflation rates, interest rates, employment levels, and gross domestic product (GDP).