Equipment: Invoice price of machine Less: Discount Net purchase price Transportation Assembly Mounting and power connections Materials used in adjusting Total cost to be recorded $ $ 12,300 (123) X 12,177 278 850 X 401 X 40 13,746

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Rizio Company purchases a machine for $12,300, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took
the $246 discount. Transportation costs of $278 were paid by Rizio. The machine required mounting and power connections costing
$850. Another $401 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the
machine was damaged and $330 worth of repairs were made.
Complete the below table to calculate the cost recorded for this machine.
Transcribed Image Text:Rizio Company purchases a machine for $12,300, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $246 discount. Transportation costs of $278 were paid by Rizio. The machine required mounting and power connections costing $850. Another $401 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $330 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.
Equipment:
Invoice price of machine
Less: Discount
Net purchase price
Transportation
Assembly
Mounting and power connections
Materials used in adjusting
Total cost to be recorded
$
12,300
(123) X
12,177
278
850 x
401
40
$ 13,746
Transcribed Image Text:Equipment: Invoice price of machine Less: Discount Net purchase price Transportation Assembly Mounting and power connections Materials used in adjusting Total cost to be recorded $ 12,300 (123) X 12,177 278 850 x 401 40 $ 13,746
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