homework 8

homework 8 - indicated by a minus sign. Omit the...

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Q uestion 1: Score 1/1 Your response Correct response Exercise 8-1: Cost of plant assets L.O. P1 Kruz Co. purchases a machine for $10,400, terms 1/10, n/60, FOB shipping point. The seller prepaid the $235 freight charges, adding the amount to the invoice and bringing its total to $10,635. The machine requires special steel mounting and power connections costing $719. Another $339 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting, $250 in damages occurred. Materials costing $40 are used in adjusting the machine to produce a satisfactory product. The adjustments are normal for this machine and are not the result of the damages. Required: Classify the following costs as machine costs or non-machine costs. If you classify a particular cost as machine costs please enter the corresponding amount in the amount column. For non-machine costs enter "0" in the amount column. (Kruz pays for this machine within the cash discount period. Negative amount should be
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Unformatted text preview: indicated by a minus sign. Omit the "$" sign in your response.) Items Full invoice price of machine Discount on machine invoice price Freight charges (transportation-in) Mounting and power connections Assembly of machine Damages to machine Materials used in adjusting Total cost to be recorded as machine costs Exercise 8-1: Cost of plant assets L.O. P1 Kruz Co. purchases a machine for $10,400, terms 1/10, n/60, FOB shipping point. The seller prepaid the $235 freight charges, adding the amount to the invoice and bringing its total to $10,635. The machine requires special steel mounting and power connections costing $719. Another $339 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting, $250 in damages occurred. Materials costing $40 are 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....
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homework 8 - indicated by a minus sign. Omit the...

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