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ivanzaharov [21]
3 years ago
14

Great Harvest Bakery purchased bread ovens from New Morning Bakery. New Morning Bakery was closing its bakery business and sold

its two-year-old ovens at a discount for $690,000. Great Harvest incurred and paid freight costs of $30,000, and its employees ran special electrical connections to the ovens at a cost of $4,000. Labor costs were $32,800. Unfortunately, one of the ovens was damaged during installation, and repairs cost $4,000. Great Harvest then consumed $800 of bread dough in testing the ovens. It installed safety guards on the ovens at a cost of $1,400 and placed the machines in operation.
Prepare a schedule showing the amount at which the ovens should be recorded in Great Harvest’s Equipment account.
Business
1 answer:
Liono4ka [1.6K]3 years ago
8 0

Answer:

$759,000

Explanation:

Preparation of a schedule showing the amount at which the ovens should be recorded in Great Harvest’s Equipment account.

Purchase price 690,000

Add Freight costs 30,000

Add Electrical connection 4,000

Add Labor costs 32,800

Add Bread dough used in testing the oven 800

Add Safety Guards 1,400

Total cost of equipment $759,000

Therefore the amount at which the ovens should be recorded in Great Harvest’s Equipment account will be $759,000

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