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Crane Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in

Crane 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 2020.

Purchase

Cash paid for equipment, including sales tax of $5,600

$117,600

Freight and insurance cost while in transit

2,240

Cost of moving equipment into place at factory

3,472

Wage cost for technicians to test equipment

4,480

Insurance premium paid during first year of operation on this equipment

1,680

Special plumbing fixtures required for new equipment

8,960

Repair cost incurred in first year of operations related to this equipment

1,456
Construction

Material and purchased parts (gross cost $224,000; failed to take 2% cash discount)

$224,000

Imputed interest on funds used during construction (stock financing)

15,680

Labor costs

212,800

Allocated overhead costs (fixed-$22,400; variable-$33,600)

56,000

Profit on self-construction

33,600

Cost of installing equipment

4,928

Compute the total cost to be capitalized for each of these two pieces of equipment.

Purchase equipment

$enter a dollar amount

Construction equipment

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