Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Norman Geological Surveys located in Baltimore, Maryland purchased surveying equipment from a manufacturer, in Raleigh, North Carolina for $ 2 6 , 0 9 0

Norman Geological Surveys located in Baltimore, Maryland purchased surveying equipment
from a manufacturer, in Raleigh, North Carolina for $26,090. Norman incurred the following
additional charges in relation to the equipment:
Total Freight from Raleigh to Baltimore $2490. Norman and the seller divided these charges
amongst themselves in the following ratio: Norman 31%; Manufacturer 69%.
Insurance premium on equipment while in transit $490
Insurance premium on equipment for first year $360
Installation of Equipment: $625
Testing of Equipment to make sure it was installed properly: $200
Sales Taxes $2061
Requirement: Calculate the cost of the equipment on Normans books? Round your calculations to the nearest dollar.
(Round the freight calculation to the nearest dollar)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions