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Compute the total cost for purchase equipment

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Reference no: EM131781483

Problem - Dane 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 2011.

PURCHASE

Cash paid for equipment, including sales tax of $9,700 $203,700

Freight and insurance cost while in transit 3,880

Cost of moving equipment into place at factory 6,014

Wage cost for technicians to test equipment 7,760

Insurance premium paid during first year of operation on this equipment 2,910

Special plumbing fixtures required for new equipment 15,520

Repair cost incurred in first year of operations related to this equipment 2,522

CONSTRUCTION

Material and purchased parts (gross cost $388,000; failed to take 2% cash discount) $388,000

Imputed interest on funds used during construction (stock financing) 27,160

Labor costs 368,600

Allocated overhead costs (fixed-$20,000; variable-$30,000) 50,000

Profit on self-construction 58,200

Cost of installing equipment 8,536

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

Purchase equipment $

Construct equipment $

Reference no: EM131781483

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