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A machine costing $212,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory
A machine costing $212,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 487,000 units of product during its life. It actually produces the following units: 122,900 in Year 1, 123,700 in Year 2, 120,300 in Year 3, 130,100 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.) Answer is complete but not entirely correct. 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 Units of production. Units of Production Year Units Depreciable Units Depreciation per unit Depreciation Expense Year 122,900 121,900 $ 0.40 48,760 Year 123,700 122,500 $ 040 49,000 10 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 Units of production. Units of Production Year Units Depreciable Units Depreciation Depreciation per unit Expense Year 122,900 121,900 $ 0.40 $ 48,760 1 Year 123,700 2 122,500 $ 0.40 49,000 Year 3 120,300 120,700 $ 0.40 48,280 Year 130,100 4 121,900 $ 0.40 48,760 Total $ 487,000 S 194,800
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