How to compute the Units of Production and DDB

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Year 1 DDB Depreciation for the Period End of Period Beginning of Period Book Depreciation Depreciation Accumulated Rate Book Value Value Expense Depreciation $ 212,200 50% $ 106,100 $ 106,100 $ 106,100 106,100 50% 53,050 159,150 53,050 53,050 50% 26,525 185,675 26,525 26,525 50 % 26,525 $ 185,675 2 3 4 Total A machine costing $212,200 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's 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: 121,400 in Year 1, 123,200 in Year 2, 120,800 in Year 3, 127,600 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this 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.) Complete this question by entering your answers in the tabs below. Year Units Depreciable Units Units of Product Depreciation Depreciation Expense 0.40 $ 48,560 0. per unit 1 LA 2 HA $ 121,400 123,200 120.800 127,600 3 $ 0.40 4 $ 0.40 Total $ 48,560