Problem 25-1 (IFRS)... Compute the cost of the building. PROBLEMSProblem 25-1 (IFRS)Sulo Company had the following borrowings during 2021. Theborrowings were made for general purposes but the proceedswere used to finance the construction of a new building.PrincipalInterest12% bank loan14% long term loan3,000,0005,000,000360,000700,000The construction began on January 1, 2021 and was completedon December 31, 2021.Expenditures on the building were P2,000,000 on January 1,P2,000,000 on June 30 and P1,000,000 on December 31.Required:Compute the cost of the building.

As per IFRS, the interest expenses on construction of building which falls under the qualifying…

Answered: PROBLEMS Problem 25-1 (IFRS) Sulo…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Briefly discuss the treatment of the following costs in short term decision making: Cost of specialist machine, Residual value, Depreciation Increamental and Sankcosts
Saved Required information Data Beginning work in process inventory: 5. Units in process 200 6. Completion with respect to materials 50 % 7 Completion with respect to conversion Costs in the beginning work in process inventory: 40 % 8. 6. Materials cost 2,590 10 Conversion cost 6,184 11 Units started into production during the period 16.500 12 Costs added to production during the period: 13 Materials cost $ 415,325 Conversion cost $ 1,266.500 15 Ending work in process inventory: 16 Units in process 100 17 Completion with respect to materials 50 % 18 Completion with respect to conversion 80 % %24 %24 2. 4. 1.
p. What does Mazaya record as the cost of the new truck?
Birdie Limited is a manufacturing company producing a variety of golf clubs. It operates from one factory that is geographically separated from its head office. The components for the clubs are assembled in the assembling department; they are then passed through to the finishing department where they are painted and packed. There are three service cost centres: administration, stores, and manufacturing support. The following costs were collected for the year to 31 May 2021: ETT Department Number of Allocated cost centre overhead costs (£,000) 225 employees 67 Assembling Finishing Administration 60 134 84 300 89 Stores 17 Manufacturing support 120 34 Additional information: The allocated cost centre overhead costs are all considered to be indirect costs as far as specific units are concerned. During the year to 31 May 2021, 208,000 machine hours were worked in the assembling department, and 270,000 direct labour hours in the finishing department. During the year to 31 May 2021, the…
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Which of the following descriptions could be applied to the IT costs in question four? ( previous question) a. Afixedproductionexpenseb. Asemi-variableadministrationoverhead c. A variable direct research expensed. A mixed direct labour distribution cost
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