Fire Pizza Food Truck purchased a giant wood stove for $11,000, terms 2/10, n/60, FOB shipping point,
Question:
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.
Step by Step Answer:
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann