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)ItemDebitCreditCost of dismantling old machineP14,480 Cash proceeds from sale of old machine P12,000Raw materials used in construction of new machine76,000 Labor on construction of new machine49,000 Cost of installation11,200 Materials spoiled in machine trial runs2,400 Profit on construction24,000 Purchase of machine tools13,000 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 isGroup of answer choicesP152,500P150,100P165,500P133,200 Next

As per the provision given in IND AS 16 Property plant and equipment if any asset purchase in…

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Chapter1: Financial Statements And Business Decisions

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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

P152,500

P150,100

P165,500

P133,200

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