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What is the total cost of the store equipment purchased

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Question - Various equipment used by TWENTYFOUR CO in its operations are either purchased from dealers or self-constructed. The following items for two different types of equipment were recorded during the calendar year 2016.

Manufacturing equipment (self-constructed)

Materials and purchased parts at gross invoice price (Twentyfour failed to take the 2% cash discount) P 450,000

Imputed interest on funds used during construction (stock financing) 36,000

Labor costs 185,000

Overhead costs (fixed - P40,000; variable - P60,000) 100,000

Gain on self-construction 74,000

Installation cost 8,600

Store equipment (purchased)

Cash paid for equipment P 175,000

Freight and insurance cost while in transit 3,500

Cost of moving equipment into place at store 1,200

Wage cost for technicians to test equipment 7,000

Insurance premium paid during first year of operation on this equipment 5,200

Special plumbing features required for this equipment 8,200

Repair cost incurred in first year of operations related to this equipment 1,450

Requirements -

1. What is the total cost of the self-constructed equipment?

2. What is the total cost of the store equipment purchased?

Reference no: EM132618479

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