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Nairobi Timber Co . both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were
Nairobi Timber 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 Purchases Cash paid for equipment, including sales tax of Freight and insurance cost while in transit Cost of moving equipment into place at factory Wage cost for technician to test equipment Insurance premium paid during the first year of operation on this equipment Special plumbing fixtures required for new equipment Repair cost incurred in first year of operations related to this equipment SelfConstructs Material and purchased parts gross cost ; failed to take cash discount Imputed interest on funds used during construction share financing Labour costs Allocated overhead costsfixed ; variable Profit on selfconstruction Cost of installing equipment Required 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
Nairobi Timber 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
Purchases
Cash paid for equipment, including sales tax of
Freight and insurance cost while in transit
Cost of moving equipment into place at factory
Wage cost for technician to test equipment
Insurance premium paid during the first year of operation on this equipment
Special plumbing fixtures required for new equipment
Repair cost incurred in first year of operations related to this equipment
SelfConstructs
Material and purchased parts gross cost ; failed to take cash discount
Imputed interest on funds used during construction share financing
Labour costs
Allocated overhead costsfixed ; variable
Profit on selfconstruction
Cost of installing equipment
Required
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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