KL Company Uses a Job Order Costing System

question 10

Essay

KL Company uses a job order costing system. During the month of July, the following events occurred:
(a) Purchased raw materials on credit, $32,000.
(b) Raw materials requisitioned: $25,800 as direct materials and $10,500 indirect materials.
(c) Assigned the factory payroll totaling $37,700, which includes $8,200 indirect labor, to jobs and overhead.
Make the necessary journal entries to record the above transactions and events.

---

Definitions:

Chapter 7 Bankruptcy

A provision of the bankruptcy code that allows individuals and businesses to discharge or eliminate most of their debts through the liquidation of assets.

Debtor's Property

Assets belonging to a debtor that may be used to pay off creditors.

Preferential Payment

A payment made by an insolvent debtor that gives preferential treatment to one creditor over another.

Voluntary Petition

A legal document filed by an individual or entity declaring their intent to undergo bankruptcy proceedings under their own accord.