12. Alvin Company acquired a machine and incurred the following costs:Cash paid for machine, including VAT of P96,000Cost of transporting machineCost of installation896,00030,00050,000Cost of testing machineCost of safety rails and platform surrounding machineCost of water device to keep machine coolCost of adjustment to machine to make it operate more efficientlyCost of repairing damage during installationCost of spare parts to cover breakdownsEstimated dismantling cost to be incurred as required by contractInsurance cost for the current yearCost of training personnel who will use the machineWhat total amount should be capitalized as cost of the machine?40,00060,00080,00075,00045,000155,00065,00015,00025,000A. 1,400,000B. 1,296,000C. 1,200,000D. 1,160,000

In order to compute capitalized cost of machine, All cost which are directly related bringing the…

ash paid for machine, including VAT of P96,000 ost of transporting machine ost of installation ost of testing machine ost of safety rails and platform surrounding machine ost of water device to keep machine cool ost of adjustment to machine to make it operate more efficiently ost of repairing damage during installation ost of spare parts to cover breakdowns stimated dismantling cost to be incurred as required by contract nsurance cost for the current year ost of training personnel who will use the machine Vhat total amount should be capitalized as cost of the machine? . 1,400,000 - 1,296,000 . 1,200,000 . 1,160,000 896,000 30,000 50,000 40,000 60,000 80,000 75,000 45,000 155,000 65,000 15,000 25,000

ash paid for machine, including VAT of P96,000 ost of transporting machine ost of installation ost of testing machine ost of safety rails and platform surrounding machine ost of water device to keep machine cool ost of adjustment to machine to make it operate more efficiently ost of repairing damage during installation ost of spare parts to cover breakdowns stimated dismantling cost to be incurred as required by contract nsurance cost for the current year ost of training personnel who will use the machine Vhat total amount should be capitalized as cost of the machine? . 1,400,000 - 1,296,000 . 1,200,000 . 1,160,000 896,000 30,000 50,000 40,000 60,000 80,000 75,000 45,000 155,000 65,000 15,000 25,000

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

Consider the construction of 9-week foundation activity with the operation cost broken down into the following elements: - Labor 1600 $ paid 400 $ weekly. - Equipments 3500 $ paid 500 $ weekly after 5 weeks - Materials 1200 $ paid 200 $ weekly after 5 weeks - Subcontractors 1500 $ paid 300 $ weekly after 3 weeks Determine the expenses (cash out) of this activity. Assume any missing data
Computing Revenue and Gross Profit on Long-term Construction Contract Supplier Corp. enters into a government contract during the year to provide computer equipment for $1,800,000. The contract consists of a single performance obligation to provide specified equipment in three years. Total costs estimated by Supplier Corp. for the contract are $1,260,000. The equipment is highly specialized and has no alternative uses. As negotiated in the contract, any costs incurred by Supplier Corp. plus a specified profit margin will be paid to Supplier Corp. in the event of a contract cancellation. Actual costs incurred during the first year of the contract were $576,000 including unexpected cost overruns of $72,000 due to labor inefficiencies. Assume that at the end of the second year of the contract, the estimate of total costs has increased to $1,350,000 million due to an increase in cost of materials. Actual costs incurred to date are $1,012,500, excluding year one inefficiencies. a. Calculate…
Calculate for the cost of site clean-up if the total duration of the project is 18 months. The estimated number of trips per week is 3 truck loads of site rubbish and debris with a cost of Php 3,200.00 per trip. Php 9,600.00 Php 19,200.00 Php 345,000 Php 691,200.00
Please dont give solutions image based thnx
Mohammed was recently interviewed for an accounting job. His employer told him that the job emphasizes future orientation and less verifiability and involves preparing reports to be primarily used by internal users. Mohammed is probably going to work as: O a. A Financial accountant O b. None of the given answers O C. AHuman resource manager O d. AManagement accountant O e. A Marketing specialist ion In a job-order costing system, indirect labor cost is usually recorded as a credit to: O a. None of the given answer is correct O b. Manufacturing Overhead. out of 4 O C. Work in Process. O d. Cost of Goods Sold. on O e. Cash or Wage Payable.
show solution for letters A and b only
Do not give answer in image
Outsourcing decision affected by equipment replacement During 2018, Adaire Toy Company made 10,000 units of Model K, the costs of which follow: Unit-level materials costs (10,000 units x $30) Unit-level labor costs (10,000 units x $40) Unit-level overhead costs (10,000 x $8) Depreciation on manufacturing equipment Model K production supervisor's salary Inventory holding costs Allocated portion of facility-level costs Total costs $ 300,000 400,000 80,000 120,000 120,000 240,000 160,000 $1,420,000 An independent contractor has offered to make the same product for Adaire for $70 each. 1. The manufacturing equipment originally cost $840,000 and has a book value of $480,000, a remaining useful life of four years, and a zero salvage value. If the equipment is not used to produce Model K in the production process, it can be leased for $80,000 per year. 2. Adaire has the opportunity to purchase for $480,000 new manufacturing equipment that will have an expected useful life of four years and a…
Following costs and revenue are incurred/earned by Toy inc. on each unit of teddy bear: Selling price Materials $49 $12 Labour $15 Variable overhead Fixed overhead $7 $6 Toy Inc. has received an offer from a customer. The customer is ready to buy 1,500 unitsat $37 each. However, the customer is asking for customized colouring on the teddy bear'spocket, which will require additional $1 per teddy bear. Should the offer from customer be accepted by Toy Inc.? Accept due to Incremental profit of $3,300. Reject due to Incremental loss of $3,000. Accept due to Incremental profit of $3,000 Reject due to incremental loss of $3,300
Please post solution as same format in question. Thanks.
correct answer?
Please do not give solution in image format thanku