Equipment $($Self$-$Constructed$).$

Material and purchased parts $($gross cost $$203,000$; failed to take $1\%$ cash discount; the company uses the net method of recording purchases of material and parts$)$

$$203,000$

Imputed interest on funds used during construction $($Note: The company has no borrowing costs but it has calculated

$14,500$

imputed interest on its equity$/$ share financing$)$

Labour costs for manufacturing the equipment

$195,000$

Overhead costs $($fixed $$21,100$; variable $$32,600)$

$53,700$

Profit on self$-$construction

$29,200$

Cost of installing equipment

$4,200$

Calculate the cost of the machinery and the cost of the equipment.

$($a$)$ Cost of the machinery

$($b$)$ Cost of the equipment $