Cost of dismantling old machine P14,480 Cash proceeds from sale of old machine P12,000 Raw materials used in construction of new machine 76,000 Labor on construction of new machine 49,000 Cost of installation 11,200 Materials spoiled in machine trial runs 2,400 Profit on construction 24,000 Purchase of machine tools
5
At the end of the reporting period, SKL Corp. shows the following account for machinery it had assembled for its own use during the period:
Account: MACHINERY (Job Order #7339344)
|
Item |
Debit |
Credit |
|
Cost of dismantling old machine |
P14,480 |
|
|
Cash proceeds from sale of old machine |
|
P12,000 |
|
Raw materials used in construction of new machine |
76,000 |
|
|
Labor on construction of new machine |
49,000 |
|
|
Cost of installation |
11,200 |
|
|
Materials spoiled in machine trial runs |
2,400 |
|
|
Profit on construction |
24,000 |
|
|
Purchase of machine tools |
13,000 |
|
An analysis of the details in the account disclosed the following:
- Cash discounts received on the payments for materials used in construction totaled P3,000, and these were reported in the purchase discounts account.
- The factory
overhead account shows a balance of P292,000 for the current period; this balance exceeds normal overhead on regular plant activities by approximately P16,900 and is attributable to machine construction.
The adjusted cost of the machinery is
Group of answer choices
P150,100
P152,500
P165,500
P133,200
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