People Window Help ?4:125G) Fri. ? ezto.mheducation.com/hm.tpx value: 25.00 poin

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People Window Help ?4:125G) Fri. ? ezto.mheducation.com/hm.tpx value: 25.00 points PB9-1 Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] At the beginning of the year, Oakmont Company bought three used machines from American Manufacturing, Inc. The machines immediately were overhauled, were installed, and started operating Because the machines were different, each was recorded separately in the accounts Machine A Machine B Machine C Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began220 $21,200 $11,700 $11,400 200 700 580 1,100 900 900 700 2,500 By the end of the first year, each machine had been operating 4,000 hours Required: 1. Compute the cost of each machine. Cost of Machine A Machine EB Machine C 6

Explanation / Answer

Oakmont Company

1.

Working:

Cost of machine = Amount paid for asset + Installation costs + Renovation costs prior to use

Machine A = 21200 + 1100 + 900 = $23200

Machine B = 11700 + 900 + 700 = $13300

Machine C = 11400 + 200 + 700 = $12300

2.

Working:

Per Chegg guidelines, please post independent questions separately. Thank you.

Cost of Machine Machine A $23,200 Machine B $13,300 Machine C $12,300

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