Rita's Pita Company bought a new dough machine at the beginning of the year at a cost

Question:

Rita's Pita Company bought a new dough machine at the beginning of the year at a cost of $6,000. The estimated useful life was four years, and the residual value was $1,000. Assume that the estimated productive life of the machine was 9,000 hours. Actual annual usage was 3,600 hours in year 1; 2,700 hours in year 2; 1,800 hours in year 3; and 900 hours in year 4.


Required:

1. Complete a separate depreciation schedule for each of the alternative methods. Round your answers to the nearest dollar.

a. Straight-line.

b. Units-of-production (use four decimal places for the per unit output factor).

c. Double-declining-balance.


Rita's Pita Company bought a new dough machine at the


2. Assuming that the machine was used directly in the production of one of the products that the company manufactures and sells what factors might management consider in selecting a preferable depreciation method in conformity with the matchingprinciple?

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