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4- A storage company constructed a small building to store its unused vehicles and other moveable assets. The costs...

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4- A storage company constructed a small building to store its unused vehicles and other moveable assets. The costs incurred

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4- A storage company constructed a small building to store its unused vehicles and other moveable assets. The costs incurred in constructing the building include the following: Contractor's costs Direct materials and labour Technical overheads General administrative overheads Interest costs in financing the construction RM 300,000 50,000 12,520 8,000 3,000 373,520 The company purchased RM 50,000 of materials for the construction: however due to technical inaccuracies in estimating the necessary number of materials for the construction, only RM 48,000 of materials were used. In addition, during the construction, several labours were affected with an infectious disease. The disease had disrupted the construction and cost the company a further RM 15,000. Determine the cost of the building for capitalization. (6 marks)

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The cost of the building for capitalization is RM500 000 This includes the following costs Contracto View the full answer


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Intermediate Accounting

Intermediate Accounting

ISBN: 978-0324312140

16th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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Posted Date: November 30, 2022 05:40:23
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