Question
To automate one of its production processes, the Milwaukee Corporation bought twotwo flexible manufacturing cells at a price of $500,000 each. When they were delivered,
To automate one of its production processes, the Milwaukee Corporation bought twotwo flexible manufacturing cells at a price of $500,000 each. When they were delivered, Milwaukee paid freight charges of $21,000 and handling fees of $13,000. Site preparation for these cells cost $49,000. Four foremen, each earning $19 an hour, worked five 40-hour weeks to set up and test the manufacturing cells. Special wiring and other materials applicable to the new manufacturing cells cost $3,900. Determine the cost basis (amount to be capitalized) for these cells.
The cost basis for these cells is $( )
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