At the beginning of the year, Oakmont Company bought three used machines from American Manufacturing, Inc. The machines were immediately overhauled, installed, and started operating. Because the machines were different, each was recorded separately in the accounts.
Machine A Machine B Machine C
$20,900 $11,400 $11,100
$950 $600 $500
$750 $400 $900
$720 $2,200 $780
Amount paid for asset Installation costs Renovation costs prior to use Repairs after production began
By the end of the first year, each machine had been operating 4,000 hours.
Required: 1. Compute the cost of each machine.
Cost of Machine
Machine A
Machine B
Machine C
