chapter 8 exercise

Rizio Co purchases a machine for $13,800, terms 110, 1160, FOB shipping point, Rizio pald within the discount period and took the $138 discount. Transportation costs of $312 were paid by Rizio. The machine required mounting and power connections costing $954. Another $450 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $315 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount included in Cost of Equipment: Involca price of machine Net purchase price 0 Total cost to be recorded