Financial statement classification

Wayside Machine Tool Company purchased a $$240,000$ welding machine to use in production of large machine tools and robots. The welding machine was expected to have a life of $10$ years and a salvage value at time of disposition of $$24,000.$ The company uses straight$-$line depreciation. During its first operating year, the machine produced $240$ product units, of which $192$ were sold.

a$.$ What part of the $$240,000$ machine cost expired? $Answer $1$

b$.$ Where would each of the amounts related to this machine appear on the financial statements at the end of the first year of operations?

Account Financial Statement Amount

Cost of goods sold

Finished good inventory