Q 18

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CONTEMPORARY ACCOUNTING 18 Multiplex Ltd used its own construction crew to extend its existing factories. What would be the most appropriate accounting treatment for the following? a Architects' fees. b Cost of debris removed during construction, following a storm. c Cash discounts received for payment of materials purchased for construction before the invoiced due date. d Cost of building a workshop (to assist with construction) that will be demolished once the extensions have been completed. e Interest on money borrowed to finance construction f Government land taxes on the portion of land to be occupied by the new extensions for the period of construction & The cost of major errors made during construction h Overhead costs of the construction department, including supervision, depreciation on buildings and equipment of construction department, electricity, water, and allocation costs for the cafeteria, medical office and personnel department. i Cost of workers' compensation insurance during construction and the cost of damages on any injuries not covered by insurance. 19 Kent Pty Ltd purchased a new machine for its manufacturing plant. While it was clear that both the invoice price of the machine and the transport costs of bringing the machine to the manufacturing plant should be uninht tnarun there was some uncertainly surrounding the treatment of the following items