The following information relates to a machine constructed by ABC Company: Cost of materials to construct machine, including VAT of P 8,400 is $78,400 • Labor costs to construct machine. $ 43,000 • Allocated overhead costs - electricity, factory space, etc., $ 22,000 • Allocated interest costs of financing machine, $ 10,000 Cost of installation, $ 12,000 • Safety inspection costs prior to use, $ 4,000 • Cost of removing the old machine, $ 2,000 Cash proceeds from the sale of old machine, $ 1,200 Repairs incurred during the first year of operations, $ 6,000 • Cost of training workers to operate the machine, $ 1,500 • Insurance for the current year, $ 2,000 • Profit saved by self-construction, $ 15,000 What is the amount at which the machine should be recorded? $ 168.000 $ 153,000 $ 146,000 $ 161,000
The following information relates to a machine constructed by ABC Company:
Cost of materials to construct machine, including VAT of P 8,400 is $78,400
• Labor costs to construct machine. $ 43,000
• Allocated
• Allocated interest costs of financing machine, $ 10,000
Cost of installation, $ 12,000
• Safety inspection costs prior to use, $ 4,000
• Cost of removing the old machine, $ 2,000
Cash proceeds from the sale of old machine, $ 1,200
Repairs incurred during the first year of operations, $ 6,000
• Cost of training workers to operate the machine, $ 1,500
• Insurance for the current year, $ 2,000
• Profit saved by self-construction, $ 15,000
What is the amount at which the machine should be recorded?
$ 168.000
$ 153,000
$ 146,000
$ 161,000
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