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
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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 projects. 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
ed 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.
Transcribed Image Text: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 projects. 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 ed 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.
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