Summit, Inc., acquired a machine that involved the following expenditures and related factors: Gross invoice price $27,200 Sales tax 1,760 Cash discount taken 544 Freight 960 Assembly of machine 800 Installation of machine 1,200 Repair of machine damage caused during installation 2,560 Tuning and adjusting machine before use 640 The initial accounting cost of the machine should be:

initial accounting cost of the machine = $32016

Explanation:

given data

Gross invoice price = $27,200

Sales tax = 1,760

Cash discount = 544

Freight = 960

Assembly of machine = 800

Installation of machine = 1,200

Repair of machine = 2,560

Tuning and adjusting machine = 640

to find out

initial accounting cost of the machine

solution

we get here initial accounting cost of the machine that is express as

initial accounting cost of the machine = Gross invoice price + Sales tax - Cash discount + Freight + Assembly of machine + Installation of machine + Tuning and adjusting machine ... 1

put here value we get

initial accounting cost of the machine = $27,200 + 1,760 - 544 + 960 + 800 + 1200 + 640

initial accounting cost of the machine = $32016