Solution-Compute the total cost for each of these two pieces

Compute the total cost for each of these two pieces

Reference no: EM131790778

Teal 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 $5,300	$111,300
Freight and insurance cost while in transit	2,120
Cost of moving equipment into place at factory	3,286
Wage cost for technicians to test equipment	4,240
Insurance premium paid during first year of operation on this equipment	1,590
Special plumbing fixtures required for new equipment	8,480
Repair cost incurred in first year of operations related to this equipment	1,378

Construction
Material and purchased parts (gross cost $212,000; failed to take 2% cash discount)	$212,000
Imputed interest on funds used during construction (stock financing)	14,840
Labor costs	201,400
Allocated overhead costs (fixed-$21,200; variable-$31,800)	53,000
Profit on self-construction	31,800
Cost of installing equipment	4,664

Compute the total cost for each of these two pieces of equipment.

Reference no: EM131790778

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Compute the total cost for each of these two pieces

Reference no: EM131790778

Reference no: EM131790778

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