Question

Exercise 10-04 Shamrock Co. both purchases and constructs various equipment it uses in its operations. The...

Exercise 10-04

Shamrock 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 2020.
Purchase

Cash paid for equipment, including sales tax of $5,900

$123,900

Freight and insurance cost while in transit

2,360

Cost of moving equipment into place at factory

3,658

Wage cost for technicians to test equipment

4,720

Insurance premium paid during first year of operation on this equipment

1,770

Special plumbing fixtures required for new equipment

9,440

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

1,534
Construction

Material and purchased parts (gross cost $236,000; failed to take 2% cash discount)

$236,000

Imputed interest on funds used during construction (stock financing)

16,520

Labor costs

224,200

Allocated overhead costs (fixed-$23,600; variable-$35,400)

59,000

Profit on self-construction

35,400

Cost of installing equipment

5,192

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

Purchase equipment

$enter a dollar amount

Construction equipment

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