Question

Apu has decided to start selling pizza at the Kwik-E-Mart. He recently purchased a pizza oven from Springfield Supply. The sticker price was $24,000 and the delivery charge (which the Kwik-E-Mart had to pay) was $400 and the insurance during transit cost $60. While the oven was being delivered, Apu's driver received a speeding ticket for $80 and the depreciation expense for the first year was $800.

As Apu's accountant, you are required to calculate the cost price for the pizza oven. Please be sure to show all your calculations.