KL Company Uses a Job Order Costing System

question 16

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)Recorded 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.

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Definitions:

Depreciation

An accounting method that allocates the cost of a tangible asset over its useful life.

Cost Recovery

The method by which businesses deduct or amortize the cost of property over a period, for tax purposes, to recover the expense of capital investments.

Net Loss

Net loss occurs when a company's expenses exceed its revenues during a specific period, reflecting a decrease in net assets from operations and other activities.

Equipment

Equipment refers to the tangible assets or tools used in the operation or production within a business, often subject to depreciation over time.