A machine costing $214,800 with a four-year life and an estimated $18,000 salvage value is installed...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A machine costing $214,800 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 492,000 units of product during its life. It actually produces the following units: 123,400 in Year 1, 123,700 in Year 2, 121,500 in Year 3, 133,400 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. Note: 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 Double declining balance 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 Year 1 Year 2 Year 3 Year 4 Total Straight Line Units of Production Double declining balance 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 Year 1 123,400 Year 2 123,700 Year 3 121,500 Year 4 133,400 Total Depreciation per unit Depreciation Expense < Straight Line Double declining balance > Complete this question by entering your answers in the tabs below. Straight Line Units of Production Double declining balance Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance. Double-declining-balance Depreciation for the End of Period Year Beginning of Period Book Period Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value Value Year 1 % Year 2 % Year 3 % Year 4 Total % < Units of Production Double declining balance > A machine costing $214,800 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 492,000 units of product during its life. It actually produces the following units: 123,400 in Year 1, 123,700 in Year 2, 121,500 in Year 3, 133,400 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. Note: 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 Double declining balance 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 Year 1 Year 2 Year 3 Year 4 Total Straight Line Units of Production Double declining balance 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 Year 1 123,400 Year 2 123,700 Year 3 121,500 Year 4 133,400 Total Depreciation per unit Depreciation Expense < Straight Line Double declining balance > Complete this question by entering your answers in the tabs below. Straight Line Units of Production Double declining balance Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance. Double-declining-balance Depreciation for the End of Period Year Beginning of Period Book Period Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value Value Year 1 % Year 2 % Year 3 % Year 4 Total % < Units of Production Double declining balance >
Expert Answer:
Answer rating: 100% (QA)
Luther Company Machine Depreciation Calculations Machine Cost 214800 Salvage Value 18000 Useful Life ... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
Is there a particular area where one could most improve in decisions making steps?
-
6 The Multivariate Normal Distribution The multivariate normal distribution with mean R d and positive definite covariance matrix R dd , denoted N(, ), has the probability density function f(x; , ) =...
-
8. (5 points). Standard Error of the Mean. What is the standard error of the mean for the following values sampled from the population of Seattle robberies: 426, 445, 603, 579, 543. (Also treat these...
-
Please answer all questions from 1 to 12 4. Work-Power-Energy 7. A body of mass m, accelerates uniformly from rest to v, in time t,, The instantaneous power delivered to the body as a function of...
-
Explain how Google generates revenue and identify future levels of revenue given some of the risk factors are for future revenue generation.
-
I was very upset that theres that many dishonest people, said Andrea Reuland, the owner of Trigs Shell Station in Minocqua, Wisconsin. She lost $3 per gallon on 586 gallons of gas sold during a...
-
Notes Payable and Interest On July 1, 2008, Jos Flower Shop borrowed $25,000 from the bank. Jo signed a ten-month, 8% promissory note for the entire amount. Jos uses a calendar year-end. Required 1....
-
Diewold Company has two departments, Milling and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Milling Department bases its...
-
Current Attempt in Progress Crane Company has the following data:Compute cost of goods manufactured. Cost of goods manufactured \ ( \ $ \ ) Current Attempt in Progress Wildhorse Grove Hardware has...
-
On September 30, 2012, Wildhorse Company issued 10% bonds with a par value of $460,000 due in 20 years. They were issued at 99 and were callable at 103 at any date after September 30, 2017. Because...
-
If you were evaluating an investment opportunity, which technique would you use and why? The weighted average cost of capital can consist of debt, preferred stock and equity. Which of these sources...
-
Discuss any 2 leadership skill categories and explain how they assist in ensuring that leaders can perform their duties successfully. ( 20 marks ) Compare and contrast democracy and autocracy and...
-
Why have companies like Weight Watchers and Kraft General Foods recently increased the money they spend on transit advertising? Explain Briefly?
-
Calculate the minimum kinetic energy that the carriage should possess at the top of the 15M diameter loop and the minimum height of release(h) of a roller coaster carriage to complete the loop.Mass...
-
Your KiwiSaver fund has returns for each of the last three years of -6%, 7% and 17%. What is the STANDARD DEVIATION for the KiwiSaver fund?
-
If the short-run average variable costs of production for a firm are rising, then this indicates that: A. Average total costs are at a maximum B. Average fixed costs are constant C. Marginal costs...
-
All of the following assets can be depreciated, except: (a) A bulldozer (b) A copper mine (c) A surgical robot (d) A conveyor belt
-
differentiate among the ethical models,
-
How do ethics and organizational mission and vision interrelate?
-
Prepare budgeted income statement (Learning Objective 2)} The budget committee of Vinning Office Supply has assembled the following data. As the business manager, you must prepare the budgeted income...
Study smarter with the SolutionInn App