Cosmo manufacturing record for the new machine Cosmo Manufacturing buys a new machine with a list price of$60,000 plus a 10% sales commission. Shipping costs are $900 FOBDestination. Installation costs are $1,500. What cost does CosmoManufacturing record for the new machine?a. $57,000b. $60,000c. $66,000d. $67,500e. $68,400

Explanation of List Price:The list price is the manufacturer's or retailer's advertised price for a…

Answered: Cosmo Manufacturing buys a new machine…

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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A printing machine is bought at P 1.3 million and is estimated to have a salvage value of P100,000 after 500,000 copies. The annual cost of renting the space for the business is P80,000, power cost per copy is P1.50, and maintenance and paper cost per copy is P5.00. The expected annual production of the machine is 100,000 copies. Annual interest is 12%. Determine: a. The annual operation and maintenace cost of the machine b. The annual depreciation of the machine. c. Production cost per copy. Show your solution
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Cosmo Manufacturing buys a new machine with a list price of $60,000 plus a 10% sales commission. Shipping costs are $900 FOB Destination. Installation costs are $1,500. What cost does Cosmo Manufacturing record for the new machine? a. $57,000 b. $60,000 c. $66,000 d. $67,500 e. $68,400