Blossom Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2025. Purchase Cash paid for equipment, including sales tax of $7,300 Freight and insurance cost while in transit $153,300 2,920 Cost of moving equipment into place at factory 4,526 Wage cost for technicians to test equipment 5,840 Insurance premium paid during first year of operation on this equipment 2,190 Special plumbing fixtures required for new equipment 11,680 Repair cost incurred in first year of operations related to this equipment 1,898 Construction Material and purchased parts (gross cost $292,000; failed to take 2% cash discount) $292,000 Imputed interest on funds obtained from stock financing used during construction 20,440 Labor costs 277,400 Allocated overhead costs (fixed-$29,200; variable-$43,800) 73,000 Profit on self-construction 43,800 Cost of installing equipment 6,424 (a1) Compute the total cost for each of these two pieces of equipment. Purchase equipment $ Construction equipment $
Blossom Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2025. Purchase Cash paid for equipment, including sales tax of $7,300 Freight and insurance cost while in transit $153,300 2,920 Cost of moving equipment into place at factory 4,526 Wage cost for technicians to test equipment 5,840 Insurance premium paid during first year of operation on this equipment 2,190 Special plumbing fixtures required for new equipment 11,680 Repair cost incurred in first year of operations related to this equipment 1,898 Construction Material and purchased parts (gross cost $292,000; failed to take 2% cash discount) $292,000 Imputed interest on funds obtained from stock financing used during construction 20,440 Labor costs 277,400 Allocated overhead costs (fixed-$29,200; variable-$43,800) 73,000 Profit on self-construction 43,800 Cost of installing equipment 6,424 (a1) Compute the total cost for each of these two pieces of equipment. Purchase equipment $ Construction equipment $
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 63P
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Transcribed Image Text:Blossom Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of
equipment were recorded in random order during the calendar year 2025.
Purchase
Cash paid for equipment, including sales tax of $7,300
Freight and insurance cost while in transit
$153,300
2,920
Cost of moving equipment into place at factory
4,526
Wage cost for technicians to test equipment
5,840
Insurance premium paid during first year of operation on this equipment
2,190
Special plumbing fixtures required for new equipment
11,680
Repair cost incurred in first year of operations related to this equipment
1,898
Construction
Material and purchased parts (gross cost $292,000; failed to take 2% cash discount)
$292,000
Imputed interest on funds obtained from stock financing used during construction
20,440
Labor costs
277,400
Allocated overhead costs (fixed-$29,200; variable-$43,800)
73,000
Profit on self-construction
43,800
Cost of installing equipment
6,424
(a1) Compute the total cost for each of these two pieces of equipment.
Purchase equipment
$
Construction equipment
$
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