Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A machine costing $209,000 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory


image text in transcribed
image text in transcribed
image text in transcribed
A machine costing $209,000 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 475,000 units of product during its life. It actually produces the following units: 123,100 in Year 1, 122,900 in Year 2. 121,500 in Year 3, 117,500 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 $ 49,240 2 49,160 3 48,600 4 47,000 Total $ 194,000 Stran Line Units of Production > A machine costing $209,000 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 475,000 units of product during its life. It actually produces the following units: 123,100 in Year 1, 122,900 in Year 2, 121,500 in Year 3, 117,500 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 doltar.) Complete this question by entering your answers in the tabs below. Units of Straight Line Production 008 Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of Year Units Depreciation Expense 1 2 3 123 100 122.000 125,500 117.500 Unit of Production Depreciable Depreciation Units per unit 015 0.40 s 0.40 $ 040 5 0.40 Total 5 A machine costing $209,000 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 475,000 units of product during its life. It actually produces the following units: 123,100 in Year 1, 122,900 in Year 2, 121,500 in Year 3, 117,500 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. Units of Straight Line DDB Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance. End of Period Year Accumulated Depreciation Book Value DDB Depreciation for the Period Beginning of Depreciation Depreciation Period Book Value Rate Expense 50% 50 % 50 % 50 % $ 1 2. $ ololo 3 4 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Theresa Libby, Alan Webb

9th canadian edition

1259269477, 978-1259269479, 978-1259024900

Students also viewed these Accounting questions

Question

Why would a person fear success?

Answered: 1 week ago