At the beginning of the year, Grillo Industries bought three used machines from

Question

At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. 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 Cost of the asset Installation costs Renovation costs prior to use Repairs after production begarn $10,800 $40,000 $23,800 3,000 4,000 2,500 950 750 700 3,900 3,500 900 By the end of the first year, each machine had been operating 8,000 hours Required 1. Compute the cost of each machine Cost of Machine

Explanation / Answer

1) Calculate cost of machine :

2) Depreciation expense journal entry :

Cost of machine Machine A 12500 Machine B 47400 Machine C 30800

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