Coronado Co. both purchases and constructs various equipment it uses in its operations. The following...

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Accounting

Coronado Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020.

Purchase

Cash paid for equipment, including sales tax of $6,000

$126,000

Freight and insurance cost while in transit

2,400

Cost of moving equipment into place at factory

3,720

Wage cost for technicians to test equipment

4,800

Insurance premium paid during first year of operation on this equipment

1,800

Special plumbing fixtures required for new equipment

9,600

Repair cost incurred in first year of operations related to this equipment

1,560
Construction

Material and purchased parts (gross cost $240,000; failed to take 2% cash discount)

$240,000

Imputed interest on funds used during construction (stock financing)

16,800

Labor costs

228,000

Allocated overhead costs (fixed-$24,000; variable-$36,000)

60,000

Profit on self-construction

36,000

Cost of installing equipment

5,280

Compute the total cost to be capitalized for each of these two pieces of equipment.

Purchase equipment

$enter a dollar amount

Construction equipment

$enter a dollar amount

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