3. New bindery equipment was purchased. The invoice cost of this equipment was $200,000. A 2% discount was taken by the Bramos Company, so that only $196,000 was actually paid to the seller. The Bramos Company also paid $800 to a trucker to have this equipment delivered. Installation of this equipment was made by Bramos workmen who worked a total of 40 hours. These men received $15.00 per hour in wages, but their time was ordinarily charged to printing jobs at $40.00 per hour, the difference representing an allowance for overhead ($21.00) and profit ($4.00).
3. New bindery equipment was purchased. The invoice cost of this equipment was $200,000. A 2% discount was taken by the Bramos Company, so that only $196,000 was actually paid to the seller. The Bramos Company also paid $800 to a trucker to have this equipment delivered. Installation of this equipment was made by Bramos workmen who worked a total of 40 hours. These men received $15.00 per hour in wages, but their time was ordinarily charged to printing jobs at $40.00 per hour, the difference representing an allowance for overhead ($21.00) and profit ($4.00).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need help to calculate the cost of the machine in transaction number 3.
Transcribed Image Text:3. New bindery equipment was purchased. The invoice cost of this equipment was $200,000. A
2% discount was taken by the Bramos Company, so that only $196,000 was actually paid to
the seller. The Bramos Company also paid $800 to a trucker to have this equipment delivered.
Installation of this equipment was made by Bramos workmen who worked a total of 40 hours.
These men received $15.00 per hour in wages, but their time was ordinarily charged to
printing jobs at $40.00 per hour, the difference representing an allowance for overhead
($21.00) and profit ($4.00).
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