Current Attempt in ProgressIvanhoe Co, both purchases and constructs various equipment it uses in its operations. The following items for two different types ofequipment were recorded in random order during the calendar year 2020.PurchaseCash paid for equipment, including sales tax of $6.700$140,700Freight and insurance cost while in transit2,680Cost of moving equlpment into place at factory4,154Wage cost for technicians to test equipment5.360Insurance premiuam paid during first year of operation on this equipment2010Special plumbing fatures required for new equipinent10,720Repair cost incurred in hrst year of operations related to this equipment1,742Construction ConstructionMaterial and purchased parts (gross cost $268,000; failed to take 2% cash discount)$268,000Imputed interest on funds used during construction (stock financing)18,760Labor costs254,600Allocated overhead costs (fixed-$26.800; varlable-$40,200)67,000Proft on self-construction40.200Cost of installing equipment5,896Compute the total cost to be capitalized for each of these two pleces of equipment.Purchase equipment$4Construction equipment

Capitalized cost is the cost incurred in purchasing or building fixed assets . In purchasing fixed…

Attempt in Progress Ivanhoe Co. both purchases and constructs various equipment it unes in its operations. The following items for two different types of equipment were recorded in random order curing the calendar year 2020 Purchase Cash paid for equipment, including sales tax of $6.700 $140,700 Freight and insurance cost while in transit 2,600 Cost of moving equipment into place at factory 4.154 Wage cost for technicians to test equipment 5.360 Isurance premium paid during frst year of operation on this equipment 2010 Special plumbing hatures requiret for new equipmernt Repair cost incurred in hrst year of operations retated to this equipment 10,720 1742 Construction

Attempt in Progress Ivanhoe Co. both purchases and constructs various equipment it unes in its operations. The following items for two different types of equipment were recorded in random order curing the calendar year 2020 Purchase Cash paid for equipment, including sales tax of $6.700 $140,700 Freight and insurance cost while in transit 2,600 Cost of moving equipment into place at factory 4.154 Wage cost for technicians to test equipment 5.360 Isurance premium paid during frst year of operation on this equipment 2010 Special plumbing hatures requiret for new equipmernt Repair cost incurred in hrst year of operations retated to this equipment 10,720 1742 Construction

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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