Watkins Production purchased a new computerized machine at a cost of $450,000. The machine has a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Watkins Production purchased a new computerized machine at a cost of $450,000. The machine has a residual value of $64,000 and an expected life of 5 years. The actual machine hours were a total of 154,400 over the 5 years. Each year the hours were: 55,000 in year 1, 50,000 in year 2, 30,000 in year 3, 13,000 in year 4, and 6,400 in year 5. 1. Calculate the depreciation cost per machine hour (2 points. Need to use a formula in the cell for full credit). Depreciation cost/machine hour: 2. Using the table I started for you below, calculate the depreciation expense, accumulated depreciation and book value for all 5 years of the machine's expected life using the units of production method of depreciation. (8 points. Need to use formulas/cell references in the cells whenever possible in order to earn full credit.) Year 0 1 2 3 4 5 сл Depreciation Expense Accumulated Depreciation Book Value Watkins Production purchased a new computerized machine at a cost of $450,000. The machine has a residual value of $64,000 and an expected life of 5 years. The actual machine hours were a total of 154,400 over the 5 years. Each year the hours were: 55,000 in year 1, 50,000 in year 2, 30,000 in year 3, 13,000 in year 4, and 6,400 in year 5. 1. Calculate the depreciation cost per machine hour (2 points. Need to use a formula in the cell for full credit). Depreciation cost/machine hour: 2. Using the table I started for you below, calculate the depreciation expense, accumulated depreciation and book value for all 5 years of the machine's expected life using the units of production method of depreciation. (8 points. Need to use formulas/cell references in the cells whenever possible in order to earn full credit.) Year 0 1 2 3 4 5 сл Depreciation Expense Accumulated Depreciation Book Value
Expert Answer:
Answer rating: 100% (QA)
The image shows a depreciation calculation question for a computerized machine purchased by Watkins Production The machine was purchased at a cost of ... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
Students also viewed these accounting questions
-
The returns on n = 4 assets are described by a Gaussian (Normal) random vector r R n , having the following expected value r and covariance matrix : The last (fourth) asset corresponds to a...
-
One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its post-closing trial balance prepared on December 31, at the end of its first year of operations, were: The...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Hot Locks Company developed the following information for its hair dryer sales: Sales price $ 125.00 per unit Variable manufacturing cost $ 44.75 per unit Variable selling expense ...
-
A 2000-kg car moving at an initial speed of 25 m/s along a horizontal road skids to a stop in 60 m. (a) Find the energy dissipated by friction. (b) Find the coefficient of kinetic friction between...
-
What is the difference between the design of a simple costing system and an activity-based costing (ABC) system?
-
Warren Smith practices medicine under the business title Warren Smith, M.D., P.C. During April, the medical practice completed the following transactions: The business uses the following accounts:...
-
Off-Shore Jewelry, Inc. is a relatively small, but fast-growing U.S. based private company. It designs, manufacturers, and distributes fine jewelry in the United States. To reduce costs, it has...
-
On September 14th, 2023 CBSA officers in the Quebec Region seized prohibited weapons and explosive substances which led to a Montreal man being charged. An investigation was launched by the Canada...
-
Summarize the concept of difference in enforcement of accounting standards: Differences in countries institutional settings have long been recognized in accounting research. Countries have been...
-
People who view investments as instruments that produce growth over a long period of time are referred to as what?
-
7. As investor, should you be happy about Starbucks' decision to pay a dividend? Should Starbucks have initiated a dividend sooner? Look at Starbuck's free cash flow to equity holders
-
ABC Company has the following obligations as of December 31: A promissory note or obligation to pay for $100,000 in 2 years; A 10-year mortgage payable for $300,000 payable in ten annual payments of...
-
July 31st Revenue 7900 Retained Earnings 7900 July 31st Income Summary 5200 Rent Expense 400 Wages Expense 1750 Repairs & Maintenance Expense 350 Supplies Expense 1400 Depriciation Expense 100 Income...
-
Why are U.S treasuries considered safe and how can one lose money by investing in them? How do investors use bond ratings when investing
-
Bill currently has no savings but would like to have accumulated $400,000 in his RRSP by the time he retires in 25 years approximately how much must bill save at the end of each month between now and...
-
Draw the expected relationship between body mass and mass-specific standard metabolic rate for reptiles. Indicate the expected value of the slope, and any transformations on the axes.
-
Tell whether the angles or sides are corresponding angles, corresponding sides, or neither. AC and JK
-
Jordana Krull owns The Eatery in Miami, Florida. The Eatery is an affordable restaurant located near tourist attractions. Jordana accepts cash and checks. Checks are deposited immediately. The bank...
-
LissenPhones uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its cell phones: Component 125X and Component 30Y. Consider two activities: testing...
-
What follows are a number of resources that are used by a manufacturer of futons. Assume that the output measure or cost driver is the number of futons produced. All direct labor is paid on an hourly...
-
The comparative balance sheet of Northern Movie Theatre Company at March 31, 2020 , reported the following: {Requirements} 1. Prepare Northern Movie Theatre Company's statement of cash flows for the...
-
Primrose Software Inc. has assembled the following data for the year ended December 31, 2020. {Requirement} Prepare Primrose Software Inc.'s statement of cash flows using the indirect method to...
-
The 2020 comparative balance sheet and income statement of 4 Seasons Supply Corp. follow. 4 Seasons had no non-cash investing and financing transactions during 2020. During the year, there were no...
Study smarter with the SolutionInn App