It is true that the cost of a plant asset includes all amounts paid to ready the asset for its intended use.
<h3>What is historical cost of plant?</h3>
The cost of plant assets includes all expenditures necessary to acquire the asset and make it ready for its intended use. The initial cost that an organization incurs is vital in order to know the amount that will be charged for a particular product.
The above means that once cost is established, a company uses that amount as the basis of accounting for the plant asset over its useful life.
Hence, It is true that the cost of a plant asset includes all amounts paid to ready the asset for its intended use.
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Answer:
$15,061.26
Explanation:
The computation of the present value for these costs are shown below:
Year Expected cash flow Discount factor at 7% Present value
1 $3,800 0.9345794393 $3,551.40
2 $4,300 0.8734387283 $3,755.79
3 $5,200 0.8162978769 $4,244.75
4 $4,600 0.762895212 $3,509.32
Total $15,061.26
Refer to the discount factor table
Answer:
$11,700
Explanation:
The computation of the balance in the work in process at the end of the month is shown below:
= Direct material cost + direct labor cost + manufacturing overhead cost percentage of direct labor cost
= $1,800 + $3,300 + $3,300 × 200%
= $1,800 + $3,300 + $6,600
= $11,700
We simply added the direct material cost, direct labor cost and the manufacturing overhead cost so that the ending balance could arrive