Exercise 8-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $12,000, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $240 discount. Transportation costs of $271 were paid by Rizio. The machine required mounting and power connections costing $830. Another $391 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $330 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded

Transcribed Image Text:

Exercise 8-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $12,000, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $240 discount. Transportation costs of $271 were paid by Rizio. The machine required mounting and power connections costing $830. Another $391 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $330 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price 4 Total cost to be recorded Exercise 8-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $12,000, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $240 discount. Transportation costs of $271 were paid by Rizio. The machine required mounting and power connections costing $830. Another $391 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $330 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price 4 Total cost to be recorded