A company purchased equipment on June 28 of the current year and placed it in service on August 1.The following costs were incurred in acquiring the equipment:
$$\begin{array} { l l }
\text { Purchase (invoice) price } & \$ 215,600 \
\text { Transportation } & 1,400 \
\text { Insurance during shipping } & 200 \
\text { One-year fire insurance beginning August 1 of the current year } & 1,200 \
\text { Installation cost } & 4,500 \
\text { Raw materials and direct labor used to test the equipment. } & 1,500
\end{array}$$
Determine the amount to be recorded as cost for the equipment.

Question

A company purchased equipment on June 28 of the current year and placed it in service on August 1.The following costs were incurred in acquiring the equipment:
 $$\begin{array} { l l } 
\text { Purchase (invoice) price } & \$ 215,600 \
\text { Transportation } & 1,400 \
\text { Insurance during shipping } & 200 \
\text { One-year fire insurance beginning August 1 of the current year } & 1,200 \
\text { Installation cost } & 4,500 \
\text { Raw materials and direct labor used to test the equipment. } & 1,500
\end{array}$$ 
Determine the amount to be recorded as cost for the equipment.

Quizplus · Accepted Answer

The Answer of A company purchased equipment on June 28 of the current year and placed it in service on August 1.The following costs were incurred in acquiring the equipment:
 $$\begin{array} { l l } 
\text { Purchase (invoice) price } & \$ 215,600 \
\text { Transportation } & 1,400 \
\text { Insurance during shipping } & 200 \
\text { One-year fire insurance beginning August 1 of the current year } & 1,200 \
\text { Installation cost } & 4,500 \
\text { Raw materials and direct labor used to test the equipment. } & 1,500
\end{array}$$ 
Determine the amount to be recorded as cost for the equipment.

A Company Purchased Equipment on June 28 of the Current