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Warehouse Construction Cost Data Purchase price - Land $125,000 Operation manager's monthly salary 5,000 Paving of parking lot 10,000 Foundation work 15,000 Parking lot lighting 10,000 Cost to remove structure on land $10,000 Proceeds from sale of metal from demolished structure 3,000 Landscaping costs Direct materials - Warehouse Closing costs on land purchase 12,000 105,000 5,000

Warehouse Construction Cost Data Purchase price - Land $125,000 Operation manager's monthly salary 5,000 Paving of parking lot 10,000 Foundation work 15,000 Parking lot lighting 10,000 Cost to remove structure on land $10,000 Proceeds from sale of metal from demolished structure 3,000 Landscaping costs Direct materials - Warehouse Closing costs on land purchase 12,000 105,000 5,000

FINANCIAL ACCOUNTING
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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Student quest 1. Privett, Inc. purchased land in 2019. An existing structure was demolished, and a new warehouse was constructed on the property in September of 2019. Privett hired construction workers at a rate of $25 per hour to do the work (1,680 hours in total). Privett's operations manager spent 25% of his time in September supervising the construction. Warehouse Construction Cost Data Purchase price - Land $125,000 Operation manager's monthly salary 5,000 Paving of parking lot 10,000 Foundation work Parking lot lighting Electrical/Plumbing contractors Hourly wage rate - Workers Payroll tax rate (all employees) Privett had an appraisal done in October 2019. The land and land improvements were appraised for $150,000 and $50,000, respectively; the building was appraised for $175,000. What is the cost of the warehouse project recorded on the books? 15,000 10,000 25,000 25 Cost to remove structure on land $10,000 Proceeds from sale of metal from demolished structure 3,000 Landscaping costs Direct materials - Warehouse Closing costs on land purchase 12,000 105,000 5,000 10% s
Transcribed Image Text:Student quest 1. Privett, Inc. purchased land in 2019. An existing structure was demolished, and a new warehouse was constructed on the property in September of 2019. Privett hired construction workers at a rate of $25 per hour to do the work (1,680 hours in total). Privett's operations manager spent 25% of his time in September supervising the construction. Warehouse Construction Cost Data Purchase price - Land $125,000 Operation manager's monthly salary 5,000 Paving of parking lot 10,000 Foundation work Parking lot lighting Electrical/Plumbing contractors Hourly wage rate - Workers Payroll tax rate (all employees) Privett had an appraisal done in October 2019. The land and land improvements were appraised for $150,000 and $50,000, respectively; the building was appraised for $175,000. What is the cost of the warehouse project recorded on the books? 15,000 10,000 25,000 25 Cost to remove structure on land $10,000 Proceeds from sale of metal from demolished structure 3,000 Landscaping costs Direct materials - Warehouse Closing costs on land purchase 12,000 105,000 5,000 10% s
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