BBA (Pty) Ltd constructed a factory plant during the financial year ended 31 December 2021. The plant was completed on 30 June 2021 and the following costs were incurred during the financial year.
BBA (Pty) Ltd constructed a factory plant during the financial year ended 31 December 2021. The plant was completed on 30 June 2021 and the following costs were incurred during the financial year.
Calculate the cost of the factory plant that was constructed (as per your amounts selected in question 1, and enter the amount in the block provided below.
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Enter only the amount (i.e. don’t include the Rand symbol). |
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Construction costs which includes material and labour costs (included in this amount is material amounting to R15 000, that was destroyed in a hail storm) |
770 000 |
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Import duties on certain construction materials - non-refundable |
30 000 |
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Import duties on certain construction materials - refundable |
10 000 |
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Administration costs |
15 000 |
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Engineer fees |
40 000 |
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Fuel costs to transport construction materials to the construction site |
3 000 |
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Advertising cost of the product produced by the new factory plant |
20 000 |
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Initial operating losses due to insufficient demand for product during the initial months after the plant was brought into use |
45 000 |
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Testing costs incurred to ensure that the plant was fully operational |
51 000 |
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Cost of function held for staff and management to celebrate the opening of the plant |
25 000 |
| Total cost of factory plant | ? |
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