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QS 9-2 Costs included in PPE LO1 Fire Pizza Food Truck purchased a giant wood stove for $11,000, terms 2/10, n/60, FOB shipping point,
QS 9-2 Costs included in PPE LO1 Fire Pizza Food Truck purchased a giant wood stove for $11,000, terms 2/10, n/60, FOB shipping point, to go on a trailer behind the food truck. Fire Pizza received an invoice for $280 for freight charges. Fire Pizza took advantage of the discount. Staff will need to wear special gloves; the gloves cost $50 a pair and staff will probably use one pair a month for the next year. The wood stove required a special steel mounting and power connections costing $815, and another $4,055 was paid to assemble the stove and get it into operation. Because a stove of this nature is so special, the insurance for the first year is $1,400. Prepare a calculation to show the cost of this machine for accounting purposes.
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