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

question 36

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.

Learn about the safeguards against liabilities for accountants, including the role of disclaimers.

Understand the specific legal standards and defenses related to accountants in the context of securities laws.

Awareness of the impacts of not adhering to GAAP and GAAS on accountant liabilities.

Familiarity with the Sarbanes-Oxley Act and its implications for accounting practices.

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Definitions:

Compounded Annually

The calculation of interest on the original principal and the accumulated interest of prior periods, applied once per year.

Quarterly Payments

Payments made four times a year at three-month intervals, often used in loan repayments.

Semi-Annually Compounded

Refers to the process of calculating and adding interest to a principal sum twice a year.

Weekly Payments

Payments that are made once every week, often used in employment or loan repayment plans.