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

Teal 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 $6,400

$134,400

Freight and insurance cost while in transit

2,560

Cost of moving equipment into place at factory

3,968

Wage cost for technicians to test equipment

5,120

Insurance premium paid during first year of operation on this equipment

1,920

Special plumbing fixtures required for new equipment

10,240

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

1,664
Construction

Material and purchased parts (gross cost $256,000; failed to take 2% cash discount)

$256,000

Imputed interest on funds used during construction (stock financing)

17,920

Labor costs

243,200

Allocated overhead costs (fixed-$25,600; variable-$38,400)

64,000

Profit on self-construction

38,400

Cost of installing equipment

5,632

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

Purchase equipment

$enter a dollar amount

Construction equipment

$enter a dollar amount

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