A company with financial year ending 31 October purchased a machine for R3450 000 (VAT inclusive) on 1 January 2021 for cash. The following cost wereincurred over the period January to March 2021 in respect of the machine:Transport cost to delivery the sewing machine to the factorypremises..........R11 400•Wages for the workers to offload and move theR16 000machine........R28 500 (excluding vat) was spent to purchase a part that the machineneeds to enable it perform at maximum capacity:.A concrete stand was erected at a cost of R15 640 (VAT inclusive) for themachine.The machine was brought into production from the 1st of April 2021The company directors estimated the machine's residual value to be R42300 (excluding VAT).Depreciation is calculated on a straight-line basls at 20% per annum.On the 20th of July 2021 the Machine was damaged by a hailstorm and itwas repaired at a cost of RR18 600 (excluding vat).Due to the inconsistence performance of the machine as a result of the effect ofthe damage sustained in the hailstorm, the directors decided to sell themachine on 31 October 2022 for R2 350 000 (excluding VAT)You are required to calculate the initial cost of the machine:Select one:a. R3 540 140b. R3 521 540c. R3 069 500d. R3 040 900

As per AS-10, 'Plant, Property & Equipment', all the costs incurred by the Business Entity to…

Answered: You are required to calculate the…

You are required to calculate the initial cost of the machine: Select one: a. R3 540 140 b. R3 521 540 c. R3 069 500 d. R3 040 900

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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Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $83,000 $42,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative $20,600 32,200 $52,800 $14,800 23,600 $38,400 $ 5,400 expense Fixed administrative expense Total administrative 27,800 $33,200 expense Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost? b. What is the total period cost? 2. With respect to cost classifications for assigning costs to cost objects: a. What is total direct manufacturing cost? b. What is the total indirect manufacturing cost? 3. With respect to cost classifications for manufacturers: a. What is the total manufacturing cost? b. What is the total nonmanufacturing cost? c. What is the total…
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please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly