A machine costing $212.200 with a four-year life and an estimated $19.000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 483,000 units of product during its life. It actually produces the following units: 122.200 in Year 1, 123,200 in Year 2, 120,400 in Year 3, 127.200 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.) Complete this question by entering your answers in the tabs below. Straight Line Units of Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line Repreciation. Straight-Line Depreciation Depreciation Expense Year Year 1 Year 2 DDB

A machine costing $212.200 with a four-year life and an estimated $19.000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 483,000 units of product during its life. It actually produces the following units: 122.200 in Year 1, 123,200 in Year 2, 120,400 in Year 3, 127.200 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.) Complete this question by entering your answers in the tabs below. Straight Line Units of Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line Repreciation. Straight-Line Depreciation Depreciation Expense Year Year 1 Year 2 DDB

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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A machine costing $212,800 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 487,000 units of product during its life. It actually produces the 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 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. Straight Line Units of Production Double declining balance Compute depreciation for each year (and total depreciation of all years…
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A machine costing $207,400 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 476,000 units of product during its life. It actually produces the following units: 122,400 in Year 1, 123,400 in Year 2, 120,300 in Year 3, 119,900 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate—this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.) Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation. Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double-declining-balance.
A machine costing $212,800 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 machine will produce 492,000 units of product during its life. It actually produces the following units: 123,300 in Year 1, 123,600 in Year 2, 120,800 in Year 3, 134,300 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. (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.) Complete this question by entering your answers in the tabs below. Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine…