A machine costing $212,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's fac January 1. The factory manager estimates the machine will produce 487,000 units of product during its life. It actually produce following units: 122,900 in Year 1, 124,000 in Year 2, 120,200 in Year 3, 129,900 in Year 4. The total number of units produced end of Year 4 exceeds the original estimate-this difference was not predicted, Note: The machine cannot be depreciated be estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation n 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 Double- declining-balance. Double-declining-balance Depreciation for the End of Period Year Beginning of Period Book Period Depreciation Rate Depreciation Expense Accumulated Book Value Depreciation Value Year 1 50 % $ 0 Year 2 50% 0 Year 3 50 % 0 Year 4 50 % 0 Total $ 0 < Units of Production Double declining balance >
A machine costing $212,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's fac January 1. The factory manager estimates the machine will produce 487,000 units of product during its life. It actually produce following units: 122,900 in Year 1, 124,000 in Year 2, 120,200 in Year 3, 129,900 in Year 4. The total number of units produced end of Year 4 exceeds the original estimate-this difference was not predicted, Note: The machine cannot be depreciated be estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation n 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 Double- declining-balance. Double-declining-balance Depreciation for the End of Period Year Beginning of Period Book Period Depreciation Rate Depreciation Expense Accumulated Book Value Depreciation Value Year 1 50 % $ 0 Year 2 50% 0 Year 3 50 % 0 Year 4 50 % 0 Total $ 0 < Units of Production Double declining balance >
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 13E
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