Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4- A storage company constructed a small building to store its unused vehicles and other moveable assets. The costs incurred in constructing the building
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)
Step by Step Solution
★★★★★
3.40 Rating (153 Votes )
There are 3 Steps involved in it
Step: 1
The cost of the building for capitalization is RM500000 This includes the following costs Contractor...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started