Question
A machine costing $212,200 with a four-year life and an estimated $19,000 salvage value is installed in Luther Companys factory on January 1. The factory
A machine costing $212,200 with a four-year life and an estimated $19,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 483,000 units of product during its life. It actually produces the following units: 122,800 in 1st year, 123,300 in 2nd year, 119,700 in 3rd year, 127,200 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimatethis difference was not predicted. (The machine must not be depreciated below its estimated salvage value.)
Required:
Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.)
Units of Straight LineProduction DDB Compute depreciation for each year (and total depreciation of all years co production Units of Production Year Depr Var Depreciable Depreciation Depreciation Units per unit Expense 122,800$ 123,300$ 119,700 $ 0.40 $ 0.40 0.40 0.40 49,120 49,320 47,880 46,880 $ 412,680 Tota $146,320
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