Exercise 1 Santiago Co. purchased a machine for $11,500, terms 2/10, 1/60. The seller prepaid the freight charges, $260, adding the amount to 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. Later, $30 of raw materials were consumed in adjusting the machine so that it would produce a satisfactory product. The adjustments were nomal for this type of machine. However, the items produced while the adjustments were being made were not saleable. Prepare a calculation to show the cost of this machine for accounting purposes. |(Assume Santiago pays the supplier in full 9 days after the date of purchase.)