Here the question, New machinery, which replaced a number of employees, were installed and put in operation in the last month of the fiscal year.

Hi. Can you help me with this question. Here the question,
New machinery, which replaced a number of employees, were installed and put in operation in the last month of the fiscal year. The employees had been dismissed after paymentof the extra month’s wages and this amount was added to the cost of machinery.
So, is it the proper way to do it ? or it was improper?I got so confuse to answer this. 
Thanks