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Assignment 3

The document provides details on the costs incurred for various property, plant and equipment (PPE) items for San Miguel Corporation for the year ending December 31, 2014. It includes costs for land, land improvements, buildings, and machinery and equipment. It summarizes the individual costs for each PPE item and calculates the total costs.

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Anna Mae Nebres
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190 views

Assignment 3

The document provides details on the costs incurred for various property, plant and equipment (PPE) items for San Miguel Corporation for the year ending December 31, 2014. It includes costs for land, land improvements, buildings, and machinery and equipment. It summarizes the individual costs for each PPE item and calculates the total costs.

Uploaded by

Anna Mae Nebres
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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The property, plant and equipment section of San Miguel Corporation’s balance sheet at

December 31, 2014 included the following items:

Land
Land improvements
Building
Machinery and equipment

During 2015 the following data were available to you upon your analysis of the accounts:
Cash paid on purchase of land
Mortgage assumed on the land bought, including interest at 16%
Realtor’s commission
Legal fees, realty taxes and documentation expenses
Amount paid to relocate persons squatting on the property
Cost of tearing down an old building on the land
Amount recovered from the salvage of the building demolished
Cost of fencing the property
Amount paid to a contractor for the building erected
Building permit fees
Excavation expenses
Architect’s fee
Interest that would have been earned had the money used during
the period of construction been invested in the money market
Invoice cost of machinery acquired
Freight, unloading, and delivery charges
Customs duties and other charges
Allowances, hotel accommodations, etc., paid to foreign
technicians during instillation and test run of machines
Royalty payment on machines purchased (based on units produced and sold)

1. Cost of Land
Land
Cash paid on purchase of land
Mortgage assumed on the land bought, including interest at 16%
Realtor’s commission
Legal fees, realty taxes and documentation expenses
Amount paid to relocate persons squatting on the property
Cost of tearing down an old building on the land
Amount recovered from the salvage of the building demolished
Total Cost of Land

2. Cost of Land Improvements


Land improvements
Cost of fencing the property
Total Cost of Land Improvements

3. Cost of Building
Building
Amount paid to a contractor for the building erected
Building permit fees
Excavation expenses
Architect’s fee
Total Cost of Building

4.Cost of Machinery and Equipment


Machinery and equipment
Invoice cost of machinery acquired
Freight, unloading, and delivery charges
Customs duties and other charges
Allowances, hotel accommodations, etc., paid to foreign
technicians during instillation and test run of machines
Total Cost of Machinery and Equipment

5. Cost of Depreciable PPE


Total Cost of Land
Total Cost of Land Improvements
Total Cost of Building
Total Cost of Machinery and Equipment
Totlat Cost of Depreciable PPE
₱ 2,500,000.00
₱ 560,000.00
₱ 3,600,000.00
₱ 6,600,000.00

₱ 10,000,000.00
₱ 16,000,000.00
₱ 1,200,000.00
₱ 200,000.00
₱ 400,000.00
₱ 300,000.00
₱ 600,000.00
₱ 440,000.00
₱ 8,000,000.00
₱ 50,000.00
₱ 250,000.00
₱ 100,000.00
₱ 600,000.00

₱ 8,000,000.00
₱ 240,000.00
₱ 560,000.00
₱ 1,600,000.00

₱ 480,000.00

₱ 2,500,000.00
₱ 10,000,000.00
₱ 16,000,000.00
₱ 1,200,000.00
₱ 200,000.00
₱ 400,000.00
₱ 300,000.00
₱ 600,000.00
₱ 30,000,000.00

₱ 560,000.00
₱ 440,000.00
₱ 1,000,000.00

₱ 3,600,000.00
₱ 8,000,000.00
₱ 50,000.00
₱ 250,000.00
₱ 100,000.00
₱ 12,000,000.00

₱ 6,600,000.00
₱ 8,000,000.00
₱ 240,000.00
₱ 560,000.00
₱ 1,600,000.00

₱ 17,000,000.00

₱ 30,000,000.00
₱ 1,000,000.00
₱ 12,000,000.00
₱ 17,000,000.00
₱ 60,000,000.00

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