Solution-How much of the costs should be capitalised

How much of the costs should be capitalised

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Reference no: EM132728754

Jennie Yoo incurs the following costs in relation to the construction of a new factory and the introduction of its products to the local market.

000

Site preparation costs 240
Materials used 1,500
Labour costs, including $90,000 incurred during an industrial dispute. No construction occurred during the period of the dispute 3,190
Testing of various processes in factory 150
Consultancy fees re installation of equipment 220
Relocation of staff to new factory 110
General overheads 500
Costs to dismantle the factory at end of its useful life in 10 years time 100

Problem 1: Using the principles of IAS 16 how much of the costs should be capitalised?

Reference no: EM132728754

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How much of the costs should be capitalised

Reference no: EM132728754

Reference no: EM132728754

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