Cash paid for equipment, including sales tax of $5,300 Freight and insurance cost while in transit Cost of moving equipment into place at factory Wage cost for technicians to test equipment Insurance premium paid during first year of operation on this equipment Special plumbing fixtures required for new equipment Repair cost incurred in first year of operations related to this equipment Construction Material and purchased parts (gross cost $212,000: failed to take 2% cash discount) Imputed interest on funds obtained from stock financing used during construction Labor costs Allocated overhead costs (fixed-$21,200; variable-$31,800) Profit on self-construction Cost of installing equipment (a1) Compute the total cost for each of these two pieces of equipment. Purchase equipment $ Construction equipment $ $111.300 2,120 3,286 4.240 1,590 8,480 1,378 $212,000 14,840 201,400 53,000 31,800 4,664

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

ss

Cash paid for equipment, including sales tax of $5,300
Freight and insurance cost while in transit
Cost of moving equipment into place at factory
Wage cost for technicians to test equipment
Insurance premium paid during first year of operation on this equipment
Special plumbing fixtures required for new equipment
Repair cost incurred in first year of operations related to this equipment
Construction
Material and purchased parts (gross cost $212,000; failed to take 2% cash discount)
Imputed interest on funds obtained from stock financing used during construction
Labor costs
Allocated overhead costs (fixed-$21,200; variable-$31,800)
Profit on self-construction
Cost of installing equipment
(a1) Compute the total cost for each of these two pieces of equipment.
Purchase equipment
Construction equipment
69
$111,300
2,120
3,286
4,240
1,590
8,480
1,378
$212,000
14,840
201,400
53,000
31,800
4,664
Transcribed Image Text:Cash paid for equipment, including sales tax of $5,300 Freight and insurance cost while in transit Cost of moving equipment into place at factory Wage cost for technicians to test equipment Insurance premium paid during first year of operation on this equipment Special plumbing fixtures required for new equipment Repair cost incurred in first year of operations related to this equipment Construction Material and purchased parts (gross cost $212,000; failed to take 2% cash discount) Imputed interest on funds obtained from stock financing used during construction Labor costs Allocated overhead costs (fixed-$21,200; variable-$31,800) Profit on self-construction Cost of installing equipment (a1) Compute the total cost for each of these two pieces of equipment. Purchase equipment Construction equipment 69 $111,300 2,120 3,286 4,240 1,590 8,480 1,378 $212,000 14,840 201,400 53,000 31,800 4,664
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education