Eagle Country Club Has Acquired a Lot to Construct a Clubhouse

question 19

Essay

Eagle Country Club has acquired a lot to construct a clubhouse. Eagle had the following costs related to the construction:​ $\begin{array}{lr}\text { Architects' fees } & 45,000 \\\text { Construction labor } & 80,000 \\\text { Engineers' fees } & 15,000 \\\text { Fences around building } & 9,000 \\\text { Grading and leveling } & 10,000 \\\text { Insurance costs incurred during construction } & 7,000 \\\text { Interest on money borrowed for construction } & 5,000 \\\text { Land } & 73,000 \\\text { Buil ding materials } & 237,000 \\\text { Sales taxes } & 6,000 \\\text { Trees and shrubs } & 6,000\end{array}$ Determine the cost of the club house to be reported on the balance sheet.

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Definitions:

Transferred-In Costs

Costs associated with units of product moved from one production process to another in the manufacturing cycle.

Prior Processing Department

A section within a manufacturing facility where raw materials undergo initial stages of processing before moving to subsequent phases of production.

Conversion Costs

The total expenses of manufacturing overhead and direct labor required to transform raw materials into completed products.

Assembly Department

A division within a manufacturing plant where components are assembled into final products.