Construction $592,800 41,496 563,160 148,200 88,920 13,042 Material and purchase

Question

Construction $592,800 41,496 563,160 148,200 88,920 13,042 Material and purchased parts (gross cost $592,800; failed to take 1% cash discount) Imputed interest on funds used during construction (stock financing) Labor costs Allocated overhead costs (fixed-$59,280; variable-$88,920) Profit on self-construction Cost of installing equipment Compute the total cost for each of these two pieces of equipment. Purchase equipment Construction equipment Click if you would like to Show Work for this question: Open Show Work 361904 1352770 SHOW SOLUTIONSHOW ANSWER

Explanation / Answer

calculation of the construction equipment particulars cost 1 materials and purchased parts ( cost - cash discount ) 586872 2 imputed interest on funds 41496 3 labor costs 563160 4 allocated overhead costs 88920 5 cost of installing equipment 13042 6 total ( 1 + 2 + 3 + 4 + 5 ) 1293490 7 less , profit on self construction 88920 8 cost of construction equipment ( 6 - 7 ) 1204570 note material costs 592800 - 1 % 586872 allocated overheads are taken variable , fixed should not be taken profit on self construction shall be deducted from the total cost

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