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

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Accounting

Sunland 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 $7,500

$157,500

Freight and insurance cost while in transit

3,000

Cost of moving equipment into place at factory

4,650

Wage cost for technicians to test equipment

6,000

Insurance premium paid during first year of operation on this equipment

2,250

Special plumbing fixtures required for new equipment

12,000

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

1,950
Construction

Material and purchased parts (gross cost $300,000; failed to take 2% cash discount)

$300,000

Imputed interest on funds used during construction (stock financing)

21,000

Labor costs

285,000

Allocated overhead costs (fixed-$30,000; variable-$45,000)

75,000

Profit on self-construction

45,000

Cost of installing equipment

6,600

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

Purchase equipment

$enter a dollar amount

Construction equipment

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