izio Company purchases a machine for $13,400, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $134 discount. Transportation costs of $303 were paid by Rizio. The machine required mounting and power connections costing $926. Another $437 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $320 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.

izio Company purchases a machine for $13,400, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $134 discount. Transportation costs of $303 were paid by Rizio. The machine required mounting and power connections costing $926. Another $437 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $320 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 43E

See similar textbooks

Exercise 10-1 (Algo) Cost of plant assets LO C1

Rizio Company purchases a machine for $13,400, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $134 discount. Transportation costs of $303 were paid by Rizio. The machine required mounting and power connections costing $926. Another $437 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $320 worth of repairs were made.

Complete the below table to calculate the cost recorded for this machine.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Exercise 8-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $14,000, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $280 discount. Transportation costs of $316 were paid by Rizio. The machine required mounting and power connections costing $968. Another $456 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $350 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded $ 0 0
Problem 1 Knight Company purchased an equipment for P369,600 to be used in the construction of MRT-3. The company had to pay the following in relation to the equipment: Import duties P10,000 Non-refundable taxes 15,000 Shipping costs Cost of testing 2,000 1,200 Installation costs 1,800 Other information: • The company is required to dismantle the equipment at the end of its useful life. The company estimates the dismantling costs to be P50,000. The relevant discount rate is 10%. • The equipment has a useful life of 5 years. How much is the initial cost of the equipment? • The purchase price includes input vat of P39 600 How much is the initial cost of the asset?
Two lathes are being considered in the manufacture of certain machine parts. Data is given below, all cost in peso: LATHE A LATHE B First Cost 40,000 56,000 Salvage Value 5,000 7,000 Annual Maintenance 2,000 2,800 Operation, Cost/hour 4 3.5 Life, in years 10 12 Time per part (hours) 0.40 0.25 REQUIRED: If the number of parts is 10,000 units, which lathe will you recommend? Use ROR If the number of parts is 10,000 units, which lathe will you recommend? Use EUAC
Current Attempt in Progress Waterway Company purchased equipment on January 1 at a list price of $121500, with credit terms 2/10, n/30. Payment was made within the discount period and Waterway was given a $2430 cash discount. Waterway paid $6400 sales tax on the equipment, and paid installation charges of $1760. Prior to installation, Waterway paid $3600 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment? O $133260 O $127230 O $130830 O $125470
(a) Niasha Stores recently imported an item of plant from Grenadines Plants Ltd. The following information has been made available with regards to the purchase: Details $ Basic list price 3,000,000 Other costs: Transportation and handling 100,000 Pre-production testing 200,000 Holding structure for plant 350,000 Electrical inputs for plant 120,000 Own labour costs 250,000 Estimated maintenance costs for 5 years 300,000 The plant is expected to be useful for 8 years. At the end of this time, it will cost $180,000 to dismantle the plant and $140,000 to restore the site to its original state and use. Trade discount applicable to the purchase of the plant was 15% on the list price. Niasha Stores had made an error in purchasing electrical inputs amounting to $20,000. This cost was included in the above figure. In order to get the plant into the country Niasha Stores was charged 20% import duties on the basic list price. Niasha…
Activity No. 3 Meshal & Assem Co. For Plastic Products pays $22,000 for a machine. Freight costs of $1,300 and import duties of $1,950 are also paid. The business pays the German manufacturer an additional $2,000 to have their engineer install the machine. We also have to pay $400 for adjustments to our factory to house the machine. They estimate that its useful life is 7 years and it will have a salvage value of $6,000. Find accumulated depreciation. ity No. 4 ...nnittelletrada reciable amour noit 61916-LOX 1arite :92161 10 9unt stiw bns asset. anoitsluɔlɔ noitsibeqeb of tejdua zi bris] (p noi 0919b of 109j0 916 2pribl pritstuplso neriv S.on vivit A abasmishi Activity No. 4 Machinery is purchased for QR 36,000. The freight and Qatari import tax are QR 3000, 5%. The business expects to be able to use the equipment for 5 years. The annual depreciation amount is QR 5000. Calculate the salvage value. 29nidbsm to 2006 noitsib91q9b of 1910 916 2001q pitalistanl ..anoitsluples. mutimu (d
QUESTION FOUR Richy Limited has plant that cost R345 000 on 01 January 2016. Installation andmodification costs R69 000 (including vat). Transfer costs paid to lawyer amounted toR20 000. Transport costs for bringing the asset to location amounted to R20 000. Theplant was ready for use on 01 January 2016. The machines were cleaned on 01 March2016 at a cost of R10 000. Due to the low order levels in April 2016 the plant stood idle.Depreciation is provided over its useful life of 5 years using the straight-line method to anil residual value. Richy Limited measures plant under the revaluation model. The plant was revalued asfollows: 31 December 2016 R310 00031 December 2017 R300 00031 December 2018 R250 000 Richy Limited transfers the maximum amount from the realised portion of therevaluation surplus to equity. VAT must be calculated at 15%.Required:Disclose the above information in the notes to the financial statements for years ending2016, 2017 and 2018. (Include in you answer the…
machine coating $250,000 with a five your life and animated $25,000 salvege valum is installed in Oun Compenys factory on Jerury 1. The toory marege stimates the machine will produce 400,000 units of product during ita ife. It actually produces the following units year 1-100,000, y 2-120,000 and year 3-20,000 units ppare depreciation schedules computing depreciation for the first 3 years under the straight-line method and urits of production methed.
PROBLEM 8: Repertoire Company acquired a machine and incurred the following costs: Cash paid for machine, including VAT of P96,000 896,000 Cost of transporting machine 30,000 Labor cost of installation by expert fitter 50,000 Labor cost of testing machine 40,000 Insurance cost for the current year 15,000 Cost of training for personnel who will use the machine 25,000 Cost of safety rails and platform surrounding machine 60,000 Cost of water device to keep machine cool 80,000 Cost of adjustment to machine to make it operate more efficiently 75,000 Estimated dismantling cost to be incurred as required by contract 65,000 What total amount should be capitalized as cost of the equipment?
RLC Manufacturing is planning to purchase a cutting equipment. Information are as follows: Equipment 1 Equipment 2 First Cost P 12,000 P 18,000 Salvage Value P 600 P 2,000 Annual Operation P 3,200 P 2,500 Annual Maintenance P 1,200 P 1,000 Taxes & Insurance 3% 3% Life, years 10 15 Money is worth at least 16%. Which equipment should be selected? Use: Annual Cost Method
Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $ 66,000 Sales tax 5,550 Shipment of machine 910 Insurance on the machine for the first year 610 Installation of machine 1,820 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Falther Inc. acquired a new processing machine: Invoice cost P1,800,000 Transportation cost 50,000 Installation cost 120,000 The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired. The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month. The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier. The cost of uninstalling the old machine before installing the new unit was P10,000. 1. What amount of should be recorded as cost of the new machine?