Rocky Mountain Water Corporation paid $270,000 to purchase equipment for use in its manufacturing operations.In addition,Rocky Mountain Water Corporation incurred the following expenditures relating to the equipment:
∙ $1,500 freight to have the equipment shipped to its manufacturing facility
∙ $750 insurance while the equipment was in transit
∙ $3,200 for special steel and concrete reinforcements used to house the equipment in the factory
∙ $1,200 for a one-year insurance policy on the equipment after it has been installed
∙ $300 to test the equipment before it is placed in service
∙ $400 for maintenance costs during the first year of service
Calculate the cost of the equipment.

Question

Quizplus · Accepted Answer

The Answer of Rocky Mountain Water Corporation paid $270,000 to purchase equipment for use in its manufacturing operations.In addition,Rocky Mountain Water Corporation incurred the following expenditures relating to the equipment:
∙ $1,500 freight to have the equipment shipped to its manufacturing facility
∙ $750 insurance while the equipment was in transit
∙ $3,200 for special steel and concrete reinforcements used to house the equipment in the factory
∙ $1,200 for a one-year insurance policy on the equipment after it has been installed
∙ $300 to test the equipment before it is placed in service
∙ $400 for maintenance costs during the first year of service
Calculate the cost of the equipment.

Rocky Mountain Water Corporation Paid $270,000 to Purchase Equipment for Use