Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs $20,000. Additional costs are $4,000 for delivery and $13,700 for sales tax. During the installation, a component of the equipment is carelessly left on a lane and hit by the automatic lane-cleaning machine. The cost of repairing the component is $1,850 What is the total recorded cost of the automatic scorekeeping equipment?

Included DR Machinery Excluded DR Expense Total cost

Total cost Included Excluded DR Machinery DR Expense

Invoice cost 190,000

Electrical work required for installation 20,000

Delivery costs 4,000

Sales tax 13,700

Repair costs 1,850

Total $ 229,550

Question

Contreras

Business

24 July, 17:00

Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs $20,000. Additional costs are $4,000 for delivery and $13,700 for sales tax. During the installation, a component of the equipment is carelessly left on a lane and hit by the automatic lane-cleaning machine. The cost of repairing the component is $1,850 What is the total recorded cost of the automatic scorekeeping equipment?

Included DR Machinery Excluded DR Expense Total cost

Total cost Included Excluded DR Machinery DR Expense

Invoice cost 190,000

Electrical work required for installation 20,000

Delivery costs 4,000

Sales tax 13,700

Repair costs 1,850

Total $ 229,550

+5

Answers (1)

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Trevon · Answer 1

The cost recorded for the equipment=$229,550

Explanation:

The total recorded cost of the automatic equipment has to include the purchase cost and other additional associated costs that come with the equipment. This can be expressed as;

T=P+A

where;

T=total cost

P=purchase cost/invoice cost

A=additional costs (electrical work cost+delivery cost+sales tax+repair cost)

In our case;

T=unknown

P=$190,000

A = (20,000+4,000+13,700+1,850) = $39,550

replacing;

T=190,000+39,550=229,550

The total cost=$229,550

The cost recorded for the equipment=$229,550