1)

Santiago Co. purchased a machine for $11,500. terms 2/10, "/60, FOB shipping point manila, The seller prepaid the lreight charges, $250, adding the amount m the invoice and bringing its total to $11,760. The machine required a special steel mounting and power connections costing $795, and another $375 was paid to assemble the machine and get it into operation. In moving the machine onto its steel mounting, it was dropped and dam- aged. The repairs cost $190. Later, $30 of raw materials were consumed in adjusting the machine so that it would produce a satisfactory product. The adjustments were normal for this type of machine and were not the result of the damage However, the items produced while the adjustments were being made were not saleable. Prepare a computation to show the cost of this machine for accounting purposes (Assume Santiago pays for the purchase within the discount periods)