4. The KLK Clothing Company manufactures professionals clothing for women. In order tokeep costs low while still producing quality clothes, KLK conducts many research anddevelopment projects. On a current project KLK researchers used P35,000of cotton andP27,000 of wool from its inventory. KLK paid its researchers P30,000 in wages andpurchaseded a special weaving machine for P60,000 cash. The machine was not suitablefor use in production activities and was not expected to be used in other researchprojects. In addition, depreciation of the project's research lab amounted to P20,000.RequiredPrepare the joumal entry to record KLK's research and development costs.

Research and development cost refers to cost related to viability of a product or a new innovation…

4. The KLK Clothing Company manufactures professionals clothing for women. In order to keep costs low while still producing quality clothes, KLK conducts many research and development projeds. On a current project KLK researchers used P35,000of cotton and P27,000 of wool from its inventory. KLK paid its researchers P30,000 in wages and purchased a special weaving machine for P60,000 cash. The machine was not suitable for use in production activities and was not expected to be used in other research projects. In addition, depreciation of the project's research lab amounted to P20,000. Required Prepare the joumal entry to record KLK's research and development costs.

4. The KLK Clothing Company manufactures professionals clothing for women. In order to keep costs low while still producing quality clothes, KLK conducts many research and development projeds. On a current project KLK researchers used P35,000of cotton and P27,000 of wool from its inventory. KLK paid its researchers P30,000 in wages and purchased a special weaving machine for P60,000 cash. The machine was not suitable for use in production activities and was not expected to be used in other research projects. In addition, depreciation of the project's research lab amounted to P20,000. Required Prepare the joumal entry to record KLK's research and development costs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Having trouble with some questions from the last chapter.
B5.
Elroy Racers makes bicycles. It has always purchased its bicycle tires from the M. Wilson Tires at $25 each but is currently considering making the tires in its own factory. The estimated costs per unit of making the tires are as follows: Direct materials $8 Direct labor $5 Variable manufacturing overhead $7 The company’s fixed expenses would increase by $60,000 per year if managers decided to make the tire.(b)What qualitative factors should Elroy Racers consider in making this decision?
The insufficient capacity of SHELLA Craft is due to the availability of manpower that the company is currently lacking. One of the supervisors in the production department, En Shauqi suggested another option to use the service of external agency to recruit and hire workers at a rate of RM30 per hour. The company also will have to pay for transportation allowance for external workers amounting RM15,000. Evaluate the above suggestion. Suggest THREE (3) qualitative factors that need to be considered if the company decided to use the service of external agency.
The company produces and sells athletic shoes for children. The costs associated with each pair of shoes are estimated to be $14 of variable costs and $5 of fixed costs. The shoes normally sell for $35 per pair. A local children’s athletic league has offered to buy 100 pairs of shoes for $19 each. The company has excess capacity. How much additional revenue would be earned if they accept the offer?
Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable number of customers. Data from the most recent period concerning these products appear below: Annual sales volume Velcro 101,800 Metal 203,600 Nylon 407,200 Unit selling price $ 1.65 $ 1.50 $ 0.85 Variable expense per unit $ 1.25 $ 0.70 Contribution margin per unit $ 0.40 $ 0.80 $ 0.25 $ 0.60 Total fixed expenses are $407,200 per period. Of the total fixed expenses, $20,000 could be avoided if the Velcro product is dropped, $80,000 if the Metal product is dropped, and $60,000 if the Nylon product is dropped. The remaining fixed expenses of $247,200 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely. The company's managers would like…
Ind
Feinan Sports, Inc., manufactures sporting equipment, including weight-lifting gloves. A national sporting goods chain recently submitted a special order for 4,000 pairs of weight-lifting gloves. Feinan Sports was not operating at capacity and could use the extra business. Unfortunately, the order's offering price of $12.70 per pair was below the cost to produce them. The controller was opposed to taking a loss on the deal. However, the personnel manager argued in favor of accepting the order even though a loss would be incurred; it would avoid the problem of layoffs and would help maintain the community image of the company. The full cost to produce a pair of weight-lifting gloves is presented below. Direct materials $ 7.40 Direct labor 3.80 Variable overhead 1.60 Fixed overhead 3.10 $15.90 Total No variable selling or administrative expenses would be associated with the order. Non-unit- level activity costs are a small percentage of total costs and are therefore not considered.…
How should I prepare a differential analysis showing whether or not I would recommend that the convertible tops be purchased from Dustin Company?
25. Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The company currently operates at 45,000 pairs. The maximum capacity of Arturito is 50,000 pairs. If arturito will accept the order, it will need to stop some of their operations. The shoes normally sell for P600. Costs pertaining to the production are as follows: Manufacturing costs are as follows: Direct material per unit P200 Direct labor per unit 180 Variable overhead per unit 50 Fixed overhead per unit 30 Period costs are as follows: Variable selling costs P20 per unit Fixed administrative costs 450,000 If the company will accept the order: It will not incur any selling costs. Variable overhead of P12 per unit will not be incurred. Exportation costs of P150,000 will be incurred. If Arturito will accept the special order, what is the…
Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help in organizing its inventory. Due to the steep learning curve required to use the new software, Garrison must decide between hiring two part-time college students or one full-time employee. Each college student would work 20 hours per week, and would earn $15 per hour. The full-time employee would work 40 hours per week and would earn $15 per hour plus the equivalent of $2 per hour in benefits. Employees are given two polo shirts to wear as their uniform. The polo-shirts cost Garrison $10 each. What are the relevant costs, relevant revenues, sunk costs, and opportunity costs for Garrison?