Business, 11.11.2019 21:31, bettybales1986
Pearl 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 2017.purchase cash paid for equipment, including sales tax of $6,200 $130,200freight and insurance cost while in transit 2,480cost of moving equipment into place at factory 3,844wage cost for technicians to test equipment 4,960insurance premium paid during first year of operation on this equipment 1,860special plumbing fixtures required for new equipment 9,920repair cost incurred in first year of operations related to this equipment 1,612construction material and purchased parts (gross cost $248,000; failed to take 2% cash discount) $248,000imputed interest on funds used during construction (stock financing) 17,360labor costs 235,600allocated overhead costs (fixed-$24,800; variable-$37,200) 62,000profit on self-construction 37,200cost of installing equipment 5,456compute the total cost for each of these two pieces of equipment. purchase equipment $ equipment $
purchase and construction of equipment: "purchase of equipment" means buying of non assets that will be used in a business.
it is recorded in balance sheet asset side and "construction of equipment" means any expenses (including material, labor cost and installation cost) that related to suitable arrangement of equipment.
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Pearl co. both purchases and constructs various equipment it uses in its operations. the following i...
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