Reference no: EM132781340
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 $10,600 $39,800 $23,600
Installation costs 850 3,700 2,800
Renovation costs prior to use 650 3,300 3,800
Repairs after production began 500 700 2,300
By the end of the first year, each machine had been operating 8,000 hours.
Required:
Problem 1: Compute the cost of each machine.
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