Magpie Ltd uses many kinds of machines in its operations. Its Constructs some of these machines itself. Determine the amount at which of these machines should be recorded in the records of Magpie Ltd

Question 1 Magpie Ltd uses many kinds of machines in its operations. It constructs some of these machines itself and acquires others from the manufacturers. The following information relates to two machines that it has recorded in the 2020-21 period. Machine A was acquired, and Machine B was constructed by Magpie Ltd itself. Machine A Cash paid for equipment, including GST of $8,500 Costs of transporting machine insurance and transport Labour costs of installation by expert fitter Labour costs of testing equipment Insurance costs for 2020-21 Costs of training for personnel who will use the machine Costs of safety rails and platforms surrounding machine Costs of water devices to keep machine cool Costs of adjustments to machine during 2020-21 to make it operate more efficiently $93,500 3,200 5,300 4,200 1,600 2,700 6,400 8,500 8,000 Machine B Cost of material to construct machine, including GST of $7,400 81,400 Labour costs to construct machine 45,600 Allocated overhead costs - electricity, factory space etc. 23,300 Allocated interest costs of financing machine 10,600 Costs of installation 12,700 Insurance for 2020-21 2,100 Profit saved by self-construction 15,900 Safety inspection costs prior to use 4,200 Determine the amount at which each of these machines should be recorded in the records of Magpie Ltd. Recorded cost of Machine A $ Recorded cost of Machine B $