seller prenaidbe Rizio Co. purchases a machine for S12,500, terms 2/10, n/60, FO
ID: 2583848 • Letter: S
Question
seller prenaidbe Rizio Co. purchases a machine for S12,500, terms 2/10, n/60, FOB shipping point. The $360 freight charges, adding the amount to the invoice and bringing its total to $12,860. The machine ts quires special steel mounting and power connections costing $895. Another $475 is paid to assemble tor machine and get it into operation. In moving the machine to its steel mounting, $180 in damages occurred Materials costing $40 are used in adjusting the machine to produce a satisfactory product. The adjus ments are normal for this machine and are not the result of the damages. Compute the cost recorded for this machine. (Rizio pays for this machine within the cash discount period.)Explanation / Answer
Solution :- Calculation of total cost to be recorded for the machine in given question :-
Purchase price of machine (12500 - 2 % of 12500)
Freight charges
Power connection charges
Assembly charges
Material cost
12250
360
895
475
40
Conclusion :- Total cost to be recorded for the machine in above given question = $ 14020.
Particulars Amount ($)Purchase price of machine (12500 - 2 % of 12500)
Freight charges
Power connection charges
Assembly charges
Material cost
12250
360
895
475
40
Total cost to be recorded for the machine 14020Related Questions
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