Granite Company purchased a machine costing $132,000, terms 1/10, n/30. The machine was shipped FOB shipping point and freight charges were $3,200. The machine requires special mounting and wiring connections costing $11,200. When installing the machine, $2,700 in damages occurred.The Total cost recorded to get the ready to use: $ 147,780
Explanation:
From the above question we get the following information
Equipment cost: 132,000 x (1 - 1%) = 130,680
shipping cost: 3,200
special wiring connections 11,200
installation cost 2,700
Total cost to get the machinery ready to use: $ 147,780
It is important to note that the cost incurred to get the equipment ready for usage and production must be included while calculating the equipment cost.
