A machine costing $210,000 with a four-year life and an estimated $16,000 salvage value Is Installed in Luther Company's factory on January 1. The factory manager estimates the machline will produce 485,0o00 units of product during its life. It actually produces the following units: 12,900 In Year 1, 123,900 In Year 2. 120,200 in Year 3, 128,000 In Year 4. The total number of units produced by the end of Year 4 exceeds the orlginal estimate-this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.) Required: Compute depreclation for each year (and total depreclation of all years combined) for the machine under each depreciation method. (Round your per unit depreclation to 2 decimal places. Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Units of Straight Line DDB Production Compute depreciation for each year (and total depreciation of all years combined) for depreciation. machine under the Straight-line Straight-Line Depreciation Depreciation Expense Year 1 49,180 2 49,580 3 48,080 4 51,200 Total 198,000 Straight Line Units of Production >

A machine costing $210,000 with a four-year life and an estimated $16,000 salvage value Is Installed in Luther Company's factory on January 1. The factory manager estimates the machline will produce 485,0o00 units of product during its life. It actually produces the following units: 12,900 In Year 1, 123,900 In Year 2. 120,200 in Year 3, 128,000 In Year 4. The total number of units produced by the end of Year 4 exceeds the orlginal estimate-this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.) Required: Compute depreclation for each year (and total depreclation of all years combined) for the machine under each depreciation method. (Round your per unit depreclation to 2 decimal places. Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Units of Straight Line DDB Production Compute depreciation for each year (and total depreciation of all years combined) for depreciation. machine under the Straight-line Straight-Line Depreciation Depreciation Expense Year 1 49,180 2 49,580 3 48,080 4 51,200 Total 198,000 Straight Line Units of Production >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A machine costing $217,200 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 493,000 units of product during its life. It actually produces the following units: 122,200 in Year 1, 124,100 in Year 2, 121,500 in Year 3, 135,200 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. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) A machine costing $217,200 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce…
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