In recent years, Whispering Winds Company has purchased three machines. Because of frequent employee turnover in...
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In recent years, Whispering Winds Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table beiow. Salvage Useful Life Depreciation Machine Acquired Cost Value (in years) Method Jan, 1, 2020 $ 96,400 $ 14,000 8 Straight-line 2. July 1, 2021 88,500 10,500 Declining-batance Nov. 1, 2021 110,500 8,500 Units-of-activity For the declining-balance method, Whispering Winds Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 34,000. Actual hours of use in the first 3 years were 2021, 800; 2022, 4,900; and 2023, 6,900. (a1) For Machine #3, calculate depreciable cost per hour under units-of-activity method. Depreciable cost per hour In recent years, Whispering Winds Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table beiow. Salvage Useful Life Depreciation Machine Acquired Cost Value (in years) Method Jan, 1, 2020 $ 96,400 $ 14,000 8 Straight-line 2. July 1, 2021 88,500 10,500 Declining-batance Nov. 1, 2021 110,500 8,500 Units-of-activity For the declining-balance method, Whispering Winds Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 34,000. Actual hours of use in the first 3 years were 2021, 800; 2022, 4,900; and 2023, 6,900. (a1) For Machine #3, calculate depreciable cost per hour under units-of-activity method. Depreciable cost per hour
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Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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