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Worf 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 $5,000 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 $105,000 2,000 3,100 4,000 1,500 8,000 1,300

Worf 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 $5,000 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 $105,000 2,000 3,100 4,000 1,500 8,000 1,300

FINANCIAL ACCOUNTING
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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Bt.18.

Worf 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 $5,000 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 $200,000; failed to take 2% cash discount) Imputed interest on funds obtained from stock financing used during construction Labor costs $105,000 2,000 3,100 4,000 1,500 8,000 1,300 $200,000 14,000 190,000
Transcribed Image Text:Worf 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 $5,000 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 $200,000; failed to take 2% cash discount) Imputed interest on funds obtained from stock financing used during construction Labor costs $105,000 2,000 3,100 4,000 1,500 8,000 1,300 $200,000 14,000 190,000
Allocated overhead costs (fixed-$20,000; variable-$30,000) Profit on self-construction Cost of installing equipment BIU T₂ T² Ix !!! (a2) If an item is not capitalized as a cost of the equipment, indicate how it should be reported. ||| € 50,000 = = 30,000 4,400 á ¶ T O Word(s)
Transcribed Image Text:Allocated overhead costs (fixed-$20,000; variable-$30,000) Profit on self-construction Cost of installing equipment BIU T₂ T² Ix !!! (a2) If an item is not capitalized as a cost of the equipment, indicate how it should be reported. ||| € 50,000 = = 30,000 4,400 á ¶ T O Word(s)
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