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Oriole Corp., a public company located in Manitoba, both purchases and constructs various pieces of machinery and equipment that it uses in its operations. The following items are for machinery that was purchased and a piece of equipment that was constructed during the 2020 fiscal year: Machinery Cash paid for machinery, including sales tax of $10,150 and recoverable GST of $7,250 $162,400 Freight and insurance cost while in transit 2,820 Cost of moving machinery into place at factory 3,200 Wage cost for technicians to test machinery 3,900 Materials cost for testing 500 Insurance premium paid on the machinery for its first year of operation 1,900 Special plumbing fixtures required for new machinery 8,050 Repair cost on machinery incurred in first year of operations 1,000 Cash received from provincial government as incentive to purchase machinery 26,300 Equipment (Self-Constructed) Material and purchased parts (gross cost $190,000; failed to take 1% cash discount; the company uses the net method of recording purchases of material and parts) $190,000 Imputed interest on funds used during construction (Note: The company has no borrowing costs but it has 14,000 calculated imputed interest on its equity/share financing) Labour costs for manufacturing the equipment 195,000 Overhead costs (fixed $22,900; variable $30,700) Profit on self-construction Cost of installing equipment 53,600 29,300 4,400 Calculate the cost of the machinery and the cost of the equipment. (a) Cost of the machinery $ +A (b) Cost of the equipment $

Oriole Corp., a public company located in Manitoba, both purchases and constructs various pieces of machinery and equipment that it uses in its operations. The following items are for machinery that was purchased and a piece of equipment that was constructed during the 2020 fiscal year: Machinery Cash paid for machinery, including sales tax of $10,150 and recoverable GST of $7,250 $162,400 Freight and insurance cost while in transit 2,820 Cost of moving machinery into place at factory 3,200 Wage cost for technicians to test machinery 3,900 Materials cost for testing 500 Insurance premium paid on the machinery for its first year of operation 1,900 Special plumbing fixtures required for new machinery 8,050 Repair cost on machinery incurred in first year of operations 1,000 Cash received from provincial government as incentive to purchase machinery 26,300 Equipment (Self-Constructed) Material and purchased parts (gross cost $190,000; failed to take 1% cash discount; the company uses the net method of recording purchases of material and parts) $190,000 Imputed interest on funds used during construction (Note: The company has no borrowing costs but it has 14,000 calculated imputed interest on its equity/share financing) Labour costs for manufacturing the equipment 195,000 Overhead costs (fixed $22,900; variable $30,700) Profit on self-construction Cost of installing equipment 53,600 29,300 4,400 Calculate the cost of the machinery and the cost of the equipment. (a) Cost of the machinery $ +A (b) Cost of the equipment $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Oriole Corp., a public company located in Manitoba, both purchases and constructs various pieces of machinery and equipment that it uses in its operations. The following items are for machinery that was purchased and a piece of equipment that was constructed during the 2020 fiscal year: Machinery Cash paid for machinery, including sales tax of $10,150 and recoverable GST of $7,250 $162,400 Freight and insurance cost while in transit 2,820 Cost of moving machinery into place at factory 3,200 Wage cost for technicians to test machinery 3,900 Materials cost for testing 500 Insurance premium paid on the machinery for its first year of operation 1,900 Special plumbing fixtures required for new machinery 8,050 Repair cost on machinery incurred in first year of operations 1,000 Cash received from provincial government as incentive to purchase machinery 26,300 Equipment (Self-Constructed) Material and purchased parts (gross cost $190,000; failed to take 1% cash discount; the company uses the net method of recording purchases of material and parts) $190,000 Imputed interest on funds used during construction (Note: The company has no borrowing costs but it has 14,000 calculated imputed interest on its equity/ share financing) Labour costs for manufacturing the equipment 195,000 Overhead costs (fixed $22,900; variable $30,700) Profit on self-construction Cost of installing equipment 53,600 29,300 4,400 Calculate the cost of the machinery and the cost of the equipment. (a) Cost of the machinery $ (b) Cost of the equipment $
Transcribed Image Text:Oriole Corp., a public company located in Manitoba, both purchases and constructs various pieces of machinery and equipment that it uses in its operations. The following items are for machinery that was purchased and a piece of equipment that was constructed during the 2020 fiscal year: Machinery Cash paid for machinery, including sales tax of $10,150 and recoverable GST of $7,250 $162,400 Freight and insurance cost while in transit 2,820 Cost of moving machinery into place at factory 3,200 Wage cost for technicians to test machinery 3,900 Materials cost for testing 500 Insurance premium paid on the machinery for its first year of operation 1,900 Special plumbing fixtures required for new machinery 8,050 Repair cost on machinery incurred in first year of operations 1,000 Cash received from provincial government as incentive to purchase machinery 26,300 Equipment (Self-Constructed) Material and purchased parts (gross cost $190,000; failed to take 1% cash discount; the company uses the net method of recording purchases of material and parts) $190,000 Imputed interest on funds used during construction (Note: The company has no borrowing costs but it has 14,000 calculated imputed interest on its equity/ share financing) Labour costs for manufacturing the equipment 195,000 Overhead costs (fixed $22,900; variable $30,700) Profit on self-construction Cost of installing equipment 53,600 29,300 4,400 Calculate the cost of the machinery and the cost of the equipment. (a) Cost of the machinery $ (b) Cost of the equipment $
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