1. Cost Cost of machinery/Not: purchase price
2. Cost Cost of machinery/Not: freight, handling,
storage and other cost related to the
acquisition
3. Cost Cost of machinery/Not: insurance while in
transit
4. Cost Cost of machinery/Not: installation cost (site
preparation & assembling)
5. Cost Cost of machinery/Not: cost of testing & trial
run & other cost necessary in preparing the
mahinery for its intended use
6. Cost Cost of machinery/Not: INITIAL ESTIMATE of
cost of dismantling and removing the
machinery and restoring the site on which it is
located, and for which the entity has a
present obligation
7. Cost Cost of machinery/Not: fee paid to
consultants for advice on the acquisition of
the machinery
8. Cost Cost of machinery/Not: cost of safety rail and
platform surrounding machine
18. Part of the
cost of the
special
product
Patterns and dies used for for specially
ordered product are recognized as?
19. 1. Delivery
equipment
2. Store
equipment
3. Office
equipment
4. Furniture
& fixtures
What is included in equipment?
20. THEIR
useful life
Patterns and dies used for the regular
products are depreciated over?
21. Delivery eq type of equipment: cars, trucks and other
vehicles used in business operation
22. Capitalized Are additions capitalized or expensed?
23. Store &
office eq
type of equipment: computers, typewriters,
adding machines, cash register, calculator
24. True T/f: improvements that do not involve
replacement of parts are simply added to the
cost of the existing asset
Chapter 35 Machinery
Study online at quizlet.com/_300l3j
