Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please tell me if im doing this right- need help asap!! A machine costing $205,800 with a four-year life and an estimated $15,000 salvage value

Please tell me if im doing this right- need help asap!!

A machine costing $205,800 with a four-year life and an estimated $15,000 salvage value is installed in Luther Companys factory on January 1. The factory manager estimates the machine will produce 477,000 units of product during its life. It actually produces the following units: 121,900 in Year 1, 123,000 in Year 2, 120,600 in Year 3, 121,500 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.

Note: Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.

image text in transcribed

A machine costing $205,800 with a four-year life and an estimated $15,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 477,000 units of product during its life. It actually produces the following units: 121,900 in Year 1, 123,000 in Year 2,120,600 in Year 3,121,500 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. Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Define Decision making

Answered: 1 week ago

Question

What are the major social responsibilities of business managers ?

Answered: 1 week ago

Question

What are the skills of management ?

Answered: 1 week ago