A machine costing $216,000 with a four-year life and an estimated $20,000 salvage value is installed...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 490,000 units of product during its life. It actually produces the following units: 121,900 in 1st year, 123,800 in 2nd year, 120,200 in 3rd year, 134,100 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate this difference was not predicted. (The machine must not 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.) (Ctrl) - Year 1 Year 1 2 3 4 Total 234 Units of Production Depreciable Units 121,900 $ 123,800 120,200 134,100 500,000 Depreciation per unit Beginning of Period Book Value $ 216,000 108,000 54,000 27,000✔ $ $ DDB Depreciation for the Period aeaeaeae 0.40 0.40 0.40 0.40 50 % $ 50 50 % 50 % Depreciation Expense Depreciation Depreciation Rate Expense $ 48,760 49,520 48,080 53,640 200,000 Straight Ling 108,000 $ 54,000✔ 27,000 13,500 S 202,500 End of Period Accumulated Depreciation Book Value 108,000 $ 108,000 162,000 54,000 189,000 27,000 202,500 13,500 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 490,000 units of product during its life. It actually produces the following units: 121,900 in 1st year, 123,800 in 2nd year, 120,200 in 3rd year, 134,100 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate this difference was not predicted. (The machine must not 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.) (Ctrl) - Year 1 Year 1 2 3 4 Total 234 Units of Production Depreciable Units 121,900 $ 123,800 120,200 134,100 500,000 Depreciation per unit Beginning of Period Book Value $ 216,000 108,000 54,000 27,000✔ $ $ DDB Depreciation for the Period aeaeaeae 0.40 0.40 0.40 0.40 50 % $ 50 50 % 50 % Depreciation Expense Depreciation Depreciation Rate Expense $ 48,760 49,520 48,080 53,640 200,000 Straight Ling 108,000 $ 54,000✔ 27,000 13,500 S 202,500 End of Period Accumulated Depreciation Book Value 108,000 $ 108,000 162,000 54,000 189,000 27,000 202,500 13,500
Expert Answer:
Related Book For
Business Math
ISBN: 978-0133011203
10th edition
Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble
Posted Date:
Students also viewed these accounting questions
-
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...
-
The Assembly Department produced 1,600 units of product during June. Each unit required 1.4 standard direct labor hours. There were 2,200 actual hours used in the Assembly Department during June at...
-
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...
-
A potential difference of 1.20 V will be applied to a 33.0 m length of 18-gauge copper wire (diameter = 0.0400 in.). Calculate (a) The current, (b) The magnitude of the current density, (c) The...
-
Table 12.8 (on the textbook's Web site) gives data on the dependent variable, the final grade on the intermediate macroeconomics examination (V), such that V = 1 if the final grade is an A and V = 0...
-
The function of the chief risk officer is most effective when he or she: a. Manages risk as a member of senior management. b. Shares the management of risk with line management. c. Shares the...
-
Assess some of the arguments for and against the imposition of price controls in the retail energy market.
-
The balance sheets of Forest Company and Garden Company are presented below as at December 31, Year 8. Additional Information Forest acquired 90% of Garden for $207,900 on July 1, Year 1, and...
-
12/31/2024 Adjusted Trail Balance Account Title Debits Credits Cash 680 Accounts receivable 845 Inventory 855 Prepaid insurance 160 Equipment 3,500 Less: Accumulated depreciation 1,220 Accounts...
-
The average owning and operating costs for four types of vehicles in the United States in 2016 include small sedans ($6579), medium sedans ($8604), SUVs ($10,255), and minivans ($9262). Use a Pareto...
-
QUESTION 7 Express this number in standard notation: 3.154 x 103 QUESTION 8 Express this number in standard notation: 3.154 x 10-3 QUESTION 9 Express this number in standard notational form: 0.15403...
-
Victoria Kaelin went to Home and Outdoor Furniture to purchase a bird bath. The salesperson quoted Victoria $543.33 for a wrought iron bird bath. The salesperson accepted Victoria's money for the...
-
Lenc Company has 200,000 shares authorized, 150,000 shares issued, and 25,000 shares of Treasury stock on January 1, 2016. On March 1, they declared a 15% stock dividend. The company then declared a...
-
hi there please may you assist me with the following questions please explain in regards to the managers of Converse sneakers, the relationship between flexibility, inventory, and customer...
-
Evaluate the security mechanisms integrated into contemporary operating systems, including discretionary and mandatory access controls, as well as address space layout randomization (ASLR) and data...
-
A married couple filing jointly is currently taking the standard deduction. They paid state income tax during the tax year 2022 in the amount of 35,000. they have no othe itemized deduction. write a...
-
Catalina comes to the tax office to have her income tax return prepared. She is eligible to claim the EIC based on Lucia (11), her granddaughter and qualifying child who lived with her for the entire...
-
The unadjusted trial balance of Secretarial Services is as follows: SECRETARIAL SERVICES Unadjusted Trial Balance as at 31 December 2017 Account Debit Credit Cash at bank Office supplies Prepaid...
-
The July bank statement for A & H Iron Works shows a balance of $37.94 and a service charge of $8.00. The account register shows deposits of $650 and $375.56 that do not appear on the statement....
-
A ladies' suit selling for $135 is marked down 25% for a special promotion. It is later marked down 15% of the sale price. Because the suit still hasn't sold, it is marked down to a price that is 75%...
-
A reclaimed T-shirt scarf sells for $32.00 and costs $20.00. Find the rate of markup based on cost and based on selling price. Round to the nearest tenth of a percent.
-
An organist on earth is playing Bach's Toccata and Fugue in D Minor, which is being broadcast by a powerful radio antenna. Travelers in a spaceship moving at speed \(v=3 / 5 c\) away from the earth...
-
A wave equation for light is where \(\phi\) is a scalar potential. Show that the set of all linear transformations of the spacetime coordinates that permit this wave equation to be written as we did,...
-
Two spaceships with string "paradox". Consider two spaceships, both at rest in our inertial frame, a distance \(D\) apart, one behind the other. There is a light string of restlength \(D\) tied...
Study smarter with the SolutionInn App