Dane 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 2015.

Instructions Compute the total cost for each of these two types of equipment. If an item is not capitalized as a cost of the equipment, indicate how it should be reported.

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Purchase Cash paid for equipment, including sales tax of 5,000 105,000 Freight and insurance cost while in transit 2,000 Cost of moving equipment into place at factory 3,100 Wage cost for technicians to test equipment 6,000 Insurance premium paid during first year of operation on this equipment Special plumbing fixtures required for new equipment 1,500 8,000 Repair cost incurred in first year of operations related to this equipment Construction 1,300 Material and purchased parts (gross cost 200,000; failed to take 1% cash discount) 200,000 Imputed interest on funds used during construction (share financing) Labor costs 14,000 190,000 Allocated overhead costs (fixed-20,000; variable-30,000) Profit on self-construction Cost of installing equipment 50,000 30,000 4,400