Apu has decided to start selling pizza at the Kwik-E-Mart. He recently purchased a pizza oven from
Question:
Apu has decided to start selling pizza at the Kwik-E-Mart. He recently purchased a pizza oven from Springfield Supply. The sticker price was $15 000 and the delivery charge (which the Kwik-E-Mart had to pay) was $400 and the insurance during transit cost $40. While the oven was being delivered, Apu’s driver received a speeding ticket for $80, which was paid by the Kwik-E-Mart. Installation and testing cost $60. The insurance on the oven for its first year of operations came to $80 and the depreciation expense for the first year was $800. As Apu’s accountant, you are required to calculate the cost price for the pizza oven. Please be sure to show all of your calculations.
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry