A machine costing $207,800 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 482,000 units of product during its life. It actually produces the following units: 123,400 in Year 1, 122,900 in Year 2, 120,800 in Year 3, 124,900 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. Straight Units of Double Line Producti... declining Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. 1 2 Complete this question by entering your answers in the tabs below. 3 4 Year Units Year 123,400 Year Year Year Total 122,900 120,800 124,900 Units of Production Depreciable Depreciation Depreciation Units per unit Expense 123,400 122,900 120,800 124,900 492,000 < Straight Line $ Double declining balance >
A machine costing $207,800 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 482,000 units of product during its life. It actually produces the following units: 123,400 in Year 1, 122,900 in Year 2, 120,800 in Year 3, 124,900 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. Straight Units of Double Line Producti... declining Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. 1 2 Complete this question by entering your answers in the tabs below. 3 4 Year Units Year 123,400 Year Year Year Total 122,900 120,800 124,900 Units of Production Depreciable Depreciation Depreciation Units per unit Expense 123,400 122,900 120,800 124,900 492,000 < Straight Line $ Double declining balance >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:A machine costing $207,800 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 482,000 units of product
during its life. It actually produces the following units: 123,400 in Year 1, 122,900 in Year 2, 120,800 in Year 3, 124,900 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.
Straight Units of Double
Line Producti... declining
Compute depreciation for each year (and total depreciation of all years combined) for the
machine under the Units of production.
1
2
Complete this question by entering your answers in the tabs below.
3
4
Year Units
Year
123,400
Year
Year
Year
Total
122,900
120,800
124,900
Units of Production
Depreciable Depreciation Depreciation
Units
per unit
Expense
123,400
122,900
120,800
124,900
492,000
< Straight Line
$
0
Double declining balance >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education