Answered

Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Rizio Co. purchases a machine for $12,500, terms 2/10, n/60, FOB shipping point. The seller prepaid the $360 freight charges, adding the amount to the invoice and bringing its total to $12,860. The machine requires special steel mounting and power connections costing $895. Another $475 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting, $180 in damages occurred. Also, $40 of materials is used in adjusting the machine to produce a satisfactory product. The adjustments are normal for this machine and are not the result of the damages.

Required:
Compute the cost recorded for this machine.

Sagot :

Answer:

$14,020

Explanation:

The amount included in the cost of equipment:

The Invoice price of the machine $ 12.500

Less: Discount Β 250

Net purchase price Β 12,250

Assembly 475

Freight charges 360

Materials used in adjusting 40

Mounting and power connections 895

0

0

Total cost to be recorded $14,020

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.