Question
A machine costing $211,000 with a four-year life and an estimated $15,000 salvage value is installed in Luther Companys factory on January 1. The factory
A machine costing $211,000 with a four-year life and an estimated $15,000 salvage value is installed in Luther Companys 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: 122,600 in Year 1, 123,600 in Year 2, 120,200 in Year 3, 133,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis difference was not predicted. (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.)
line 4 i cannot figure out, please help?
Units of production | |||||
year | units | depreciable units | Depreciation per unit | Depreciation Expense | |
1 | 122,600.00 | 122600 | $ 0.40 | $ 49,040.00 | |
2 | 123,600.00 | 123600 | $ 0.40 | $ 49,440.00 | |
3 | 120,200.00 | 120200 | $ 0.40 | $ 48,080.00 | |
4 | 133,600.00 | ? | $ 0.40 | ? | |
Total | |||||
DDB Depreciation for the Period | End of period | ||||
year | beginning of period book value | Depreciation rate | Depreciation Expense | Accumulated Depreciation | book value |
1 | $ 211,000.00 | 50% | $ 105,500.00 | $ 105,500.00 | $ 105,500.00 |
2 | $ 105,500.00 | 50% | $ 52,750.00 | $ 158,250.00 | $ 52,750.00 |
3 | $ 52,750.00 | 50% | $ 26,375.00 | $ 184,625.00 | $ 26,375.00 |
4 | $ 26,375.00 | $ 197,813.00 | |||
Total | $ - |
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