Question
A machine costing $214,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Companys factory on January 1. The factory
A machine costing $214,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 492,000 units of product during its life. It actually produces the following units: 123,300 in Year 1, 123,900 in Year 2, 120,100 in Year 3, 134,700 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimatethis 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.)
How do you find the Depreciable Unit?
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 Units Year Depreciation per unit Depreciation Expense 49,320 1 0.40 Depreciable Units 123,300 123,900 120,100 123,300 123,900 2 0.40 49,560 3 0.40 120,100 134,700 4 0 X $ 0.40 48,040 49,880 196,800 Total $ 367,300 $Step by Step Solution
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