A company incurred the following costs for a new delivery truck:
|Delivery charge from seller's location||$1,500|
|Special racks for storage||$3,000|
|Normal repairs to the truck before it was used for the first time||$1,100|
|Signs painted on the truck||$2,000|
|Insurance on the truck before it was used for the first time||$3,000|
What is the cost of the delivery truck?
The tax which is imposed by the government authorities on the sale of any goods and services is known as the sales tax. It is a consumption tax. Generally, the sales tax is levied at the point of the sale which is collected by the retailer.
Answer and Explanation: 1
The correct answer is option D which is $147,900
Computation of cost of the delivery truck
See full answer below.
Become a member and unlock all Study Answers
Start today. Try it nowCreate an account
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
fromChapter 3 / Lesson 2
Explore cost accounting systems. Learn the definition of a cost accounting system and understand its different types. See cost accounting system examples.