The total Cost of the equipment is $2,27,700. In which the following included, excluded and expensed as incurred are
Invoicing costs - included in the price
Electrical work required for installation - Included in the price
Delivery costs - included in the price
Sales tax - included in the price
Repair costs - not included or excluded
A machine used by a company to produce products and services is known as a machine tool. It is a vital long-term asset as it speeds up the production process such as transportation, computers and other equipment. These costs will include the costs that were necessary to start opening the plant property. There are equipment costs.
We have given the following details ,
Total Cost DR Machinary DR Expense
Invoice cost $190,000 $190,000
electric work
and $20,000 $20,000
installation cost
delivery cost। $4,000 $4,000
sales tax $13,700 $13,700
repair cost $1,850 $1,850
total $22,9550 $22,7700 $ 1,850
Accordingly, all the mentioned costs except for the repair of the part will be included in the cost of the machinery.
Included in price Excluded
invoice repair cost
electric and installation
delivery
sales tax
Hence , the total equipment cost is $22,7700.
To learn more about Equipment cost, refer:
https://brainly.com/question/15549536
#SPJ4
