An asset is constructed and the following costs are incurred: Materials P1,000,000) (normal, Labor (normal, P800,000) Manufacturing overhead Materials Labor Factory OH Construc ted asset 300 200 ? 2 1,300,000 1,000,000 900,000 3,200,000 Finished goods 1,000 800 ? INT Total 1,300 1,000 ? 3.200 How much overhead is to be assigned to each asset? 15. During the current year, Wilbur Company traded in an old machine for a newer model. Data relative to the old and new machines on the date of exchange follow: Old machine: Original cost Accumulated depreciation Average published retail value New machine: List price Cash price without trade in Cash paid with trade in 800,000 600,000 170,000 1,000,000 900,000 780,000 What amount should be recognized as cost of the new machine acquired in the exchange? 14. An entity traded an old equipment with a dealer for newer model. Old equipment: Cost Accumulated Dep'n Carrying amount Fair value Trade in value New equipment: List price Trade in value of old equipment Cash payment 1,400,000 1,000,000 400,000 350,000 500,000 2,000,000 (500,000) 1,500,000 Prepare journal entries using the fair value approach and trade-in value approach.