A machine costing $215,400 with a four-year life and an estimated $19,000 salvage value is installed...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A machine costing $215,400 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 491,000 units of product during its life. It actually produces the following units: 121,400 in Year 1, 122,700 in Year 2, 120,300 in Year 3, 136,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation. Straight-Line Depreciation Year Depreciation Expense 1 <Straight Line Units of Production > Total 2 3 4 Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the production. Units of Production Year Units Depreciable Units Depreciation per unit Depreciation Expense 1 <Straight Line 2 3 4 Total 121,400 122,700 120,300 136,600 DDB > Units of Production DDB Straight Line Compute depreciation for each year (and total depreciation of all years combined) for the machine under the declining-balance. DDB Depreciation for the Period End of Period Beginning of Period Book Depreciation Depreciation Year Accumulated Depreciation Book Value Rate Value Expense % % % % < Units of Production DDB 1 2 3 4 Total A machine costing $215,400 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 491,000 units of product during its life. It actually produces the following units: 121,400 in Year 1, 122,700 in Year 2, 120,300 in Year 3, 136,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation. Straight-Line Depreciation Year Depreciation Expense 1 <Straight Line Units of Production > Total 2 3 4 Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under the production. Units of Production Year Units Depreciable Units Depreciation per unit Depreciation Expense 1 <Straight Line 2 3 4 Total 121,400 122,700 120,300 136,600 DDB > Units of Production DDB Straight Line Compute depreciation for each year (and total depreciation of all years combined) for the machine under the declining-balance. DDB Depreciation for the Period End of Period Beginning of Period Book Depreciation Depreciation Year Accumulated Depreciation Book Value Rate Value Expense % % % % < Units of Production DDB 1 2 3 4 Total
Expert Answer:
Answer rating: 100% (QA)
Q Compute depreciation for each year and total depreciation of all years combined for the machine un... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
A machine costing $216,000 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce...
-
On January 1 the West Company had outstanding 10,000 shares of $10 par common stock , which had been originally issued at an average price of $35 per share. During the year the company engaged in the...
-
The Assembly Department produced 2,000 units of product during June. Each unit required 1.5 standard direct labor hours. There were 3,200 actual hours used in the Assembly Department during June at...
-
Evaluate the derivatives of the following functions. (z) = cot -1 z
-
David Hall, chief of the maintenance department at Mechanical Dynamics, has presented you with the following failure curve. What does it suggest? Time Number of failures
-
A 2-ft3 rigid tank contains saturated refrigerant- 134a at 160 psia. Initially, 5 percent of the volume is occupied by liquid and the rest by vapor. A valve at the top of the tank is now opened, and...
-
Pluto Corporation issued \(\$ 400,000\) of \(7 \%, 20\) year bonds payable on March 31, 2006. The bonds were issued at 100 and pay interest on March 31 and September 30. Record (a) issuance of the...
-
In this chapter we discuss the Joe Paterno matter at Penn State. Another situation where a respected individuals reputation was tarnished by personal decisions having nothing to do with performance...
-
If you had a promising idea for a business venture and wanted to acquire start-up capital, what steps would you take to attain the needed financial resources?
-
A six-lane freeway (three lanes in each direction) in a scenic area has a measured free-flow speed of 88.5 km/h. The peak-hour factor is 0.80, and there are 8% large trucks and buses and 6%...
-
Management at AdventureWorks wants to determine the day of the week which have the most sales in 2012. You will use the Sales.SalesOrderHeader table. You will need the following functions - DATENAME,...
-
You are the cost accountant for Porch Perfection, a fictious company, that manufactures porch swings. You have summarized the following manufacturing overhead data for the last period. Actual Costs...
-
Find the optimal portfolio for a target Active Risk of 5% per year, assuming that short-positions are allowed, but now adding the constrains that the beta of the optimal portfolio with respect to the...
-
What three leadership theories would best support organizational change in Starbucks' Mission and Values? How do these three theories compare?
-
1. market analysis from kwong woh hing 2. ad words stratergy ( PREMIUM RANGE ) - ad groups and their key rationale - three text ads - how the text ads are different. from each other - 20 key words...
-
Examine the principles of protein folding and misfolding, exploring how chaperone proteins assist in correct protein folding and prevent protein aggregation, and discuss the pathological consequences...
-
One issue that has been debated is the practice of journalists voting on all-star teams, MVPs , Hall of Fame inductees, and other honors (such as the Heisman). Consider this practice in light of the...
-
What are bounds and what do companies do with them?
-
Key figures for Apple and Google follow. Required 1. Compute return on total assets for Apple and Google for the two most recent years. 2. Separate the return on total assets computed in part 1 into...
-
Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. If the company expects sales of 10,000 units, compute its margin of safety (a)...
-
A cell phone company offers two different plans. Plan A costs $80 per month for unlimited talk and text. Plan B costs $0.20 per minute plus $0.10 per text message sent. You need to purchase a plan...
-
List each of the six branches of AI and briefly explain each one.
-
What are the three components of an Expert System (ES) program? Explain what each component does.
-
When training a machine learning application, developers can use one of three different approaches: supervised learning, unsupervised learning, and reinforcement learning. Describe each strategy and...
Study smarter with the SolutionInn App