Required information

Skip to question

[The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,000. The machine's useful life is estimated at 10 years, or 390,000 units of product, with a $8,000 salvage value. During its second year, the machine produces 33,000 units of product.

Determine the machines second-year depreciation using the units-of-production method.

Units-of-production DepreciationChoose Numerator:/Choose Denominator:=Annual Depreciation ExpenseCost minus salvage/Total units of production=Depreciation expense per unit/=0YearAnnual Production (units)Depreciation Expense2