A machine costing $257,500 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 475,000 units of product during its life. It actually produces the following units: 220,000 in 1st year, 124,600 in 2nd year, 121,800 in 3rd year, 15,200 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted. (The machine must not 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.)
Q: John Dorian owns Dorian’s Copy Center, which provides a 24-hour printing and copying service to the…
A:
Q: Oki Company pays $264,000 for equipment expected to last four years and have a $29,000 salvage…
A: Given information is: Oki Company pays $264,000 for equipment expected to last four years and have…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Under Units of production method : Depreciation =(Cost of asset - salvage value )×Actual Units…
Q: A machine costing $210,000 with a four-year life and an estimated $16,000 salvage value Is Installed…
A: Depreciation under straight-line method = ( Historical cost- Salvage value)/Useful life Depreciation…
Q: NewTech purchases computer equipment for $264,000 to use in operating activities for the next four…
A: Depreciation is the reduction in the value of an asset over a useful life of the asset. It is an…
Q: A machine costing $450,000 with a four-year life and an estimated $30,000 salvage value is installed…
A: Answer) Calculation of Depreciation expense for Year 2 Depreciation expense for Year 2 = Number of…
Q: A machine costing $209,600 with a four-year life and an estimated $16,000 salvage value is installed…
A: Depreciation is charged on value of assets for the normal wear and tear expense and for the repair…
Q: A FedEx sorting machine that cost $10,000 with a useful life of five years and a residual value of…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: GIVEN Ramirez Company installs a computerized manufacturing machine in its factory at the…
Q: [The following information applies to the questions displayed below.] Ramirez Company installs a…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: Mkara bakers bought a machinery of Sh. 1,500,000. The Machinery is expected to produce 3 million…
A: (i) Depreciation charge per pencil = Sh.1,500,000-Sh.150,0003,000,000=Sh.1,350,0003,000,000=Sh. 0.45
Q: A diesel-powered tractor with a cost of $90,000 and estimated residual value of $15,000 is expected…
A:
Q: ranklin Printing Company is considering replacing a machine that has been used in its factory for 4…
A: Yes , Correct In differential analysis , relevant cost is considered where cash inflow and outflow…
Q: A machine costing $209;600 with a four-year life and an estimated $16,000 salvage value is installed…
A: Straight line depreciation = ( Initial Cost - Salvage Value ) / Estimated useful life…
Q: AEC purchased an equipment for its manufacturing plant that costs PhP 3 750 000. It is estimated to…
A: In the context of the given question, we are going to compute the book value of the plant after…
Q: Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $124,000 to provide…
A: Calculation of Present Value of Outflow Years Particulars Outflows PVF @ 8% Present Value 0…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Under double declining method, depreciation is charged on reduced value after every year with the…
Q: A company purchased machinery for $ 200,000 on 1st January . It has an estimated useful life of 10…
A: Formula: Depreciation per unit = ( Machinery cost - Salvage value ) / Estimated units produced
Q: King Frost produces and sells ice cream, gelato and sorbet. The following information is available:…
A: Account classification method which was used by the firm to determine the total production cost…
Q: A machine costing $210,600 with a four-year life and an estimated $17,000 salvage value is installed…
A: Depreciation refers to the charge that represents the decline in the value of fixed asset. The…
Q: A machine costing $207,400 with a four-year life and an estimated $17,000 salvage value is installed…
A: Depreciation can be referred to as the fall in the value of a fixed asset due to the usage, wear and…
Q: AEC purchased an equipment for its manufacturing plant that costs PhP 3,750,000 + 10,000(x). It is…
A: Depreciation seems to be an accounting method for assigning costs of a physical or tangible asset…
Q: Copy equipment was acquired at the beginning of the year at a cost of $60,040 that has an estimated…
A: A) Depreciable cost = Cost of Equipment - Residual value =$60040 - $5500 =$54540 Depreciable cost…
Q: A machine costing $209,000 with a four-year life and an estimated $17,000 salvage value is installed…
A: Given that, cost of the asset = $209000 salvage value of asset = $17000 use ful life of asset = 4…
Q: A machine costing $209,400 with a four-year life and an estimated $19,000 salvage value is installed…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Lexigraphic Printing Company is considering replacing a machine that has been used in its factory…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: A machine costing $210,600 with a four-year life and an estimated $17,000 salvage value is installed…
A: Straight line depreciation is a method for charging depreciation expense on the cost of the asset…
Q: A machine costing $209,400 with a four-year life and an estimated $19,000 salvage value is installed…
A: Depreciation is the reduction in value in fixed asset over a period of time. This reduction is…
Q: A company purchased machinery for $ 200,000 on 1st January . It has an estimated useful life of 10…
A: Formula: Depreciation per unit = ( Asset cost - salvage value ) / Total estimated units
Q: AEC purchased an equipment for its manufacturing plant that costs PhP 3,750,000 + 10,000(x). It is…
A: Depreciation under straight-line method = (Historical cost - Salvage value)/Useful life Net Book…
Q: The useful life of a milling machine costing Php 500,000 and a scrap value of Php 10,000 is…
A: Depreciation per unit = (cost - scrap value) / estimated units to be produced…
Q: A machine costing $215,000 with a four-year life and an estimated $19,000 salvage value is installed…
A: Annual Straight-Line Depreciation Expense=Cost of Asset-Salvage valueUseful Life Double-Declining…
Q: A machine costing $210,000 with a four-year life and an estimated $16,000 salvage value Is Installed…
A: The question is related to Depreciation Accounting. In Straight-line Method of Depreciation the…
Q: A company purchased machinery for $ 200,000 on 1st January . It has an estimated useful life of 10…
A: Depreciable cost=Purchase price-Salvage value=$200,000-$20,000=$180,000
Q: Lexigraphic Printing Company is considering replacing a machine that has been used in its factory…
A:
Q: A machine costing $217,200 with a four-year life and an estimated $20,000 salvage value is installed…
A: Double declining balance method is a method of charging depreciation, under which depreciation is…
Q: Determine the total depreciation during the year.Determine the depreciation cost chargeable to each…
A: Given information is: An asphalt and aggregate mixing plant having a capacity of 50 cu.m every hour…
Q: Dexter Industries purchased packaging equipment on January 8 for $511,400. The equipment was…
A: Formula: Straight line method = ( Asset cost - Salvage value ) / Useful life years
Q: Mang Juan purchased an equipment for its manufacturing plant that costs PhP 3,750,000 + 10,000(x).…
A: SOLUTION FORMULA- SUM OF YEAR OF DIGIT = n(n+1) / 2. =…
Q: A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed…
A: The declining balance method is a method of charging the depreciation in which the higher amount of…
Q: Faye, Inc. finished constructing its factory on Jan. 1, 2012 at a total cost of P80,000,00O. The…
A: Recognition of Improvement in building: A building's useful life or worth or value can be…
Q: A machine costing $209,600 with a four-year life and an estimated $16,000 salvage value is installed…
A: Straight Line Method: It is the method of depreciation, the process of expensing an asset over a…
Q: A machine costing $209,600 with a four-year life and an estimated $16,000 salvage value is installed…
A: Straight-line Depreciation = (Original Cost - Salvage Value) / Useful Life Units of Production…
Q: On July 23 of the current year, Dakota Mining Co. pays $4,715,000 for land estimated to contain…
A: Hi student Since there are multiple sub parts, we will answer only first three sub parts.
Q: A machine costing $210,400 with a four-year life and an estimated $18,000 salvage value is installed…
A: Solution Given Cost 210400 Salvage value 18000 Useful life in years 4 year…
Q: machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed…
A: Straight-line Depreciation method : Annual Depreciation = (Cost of Machine - Salvage Value ) /…
Q: Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5- period, the costs…
A: Net cash flow, years 1-4 = Annual revenue - Annual cost = $27,000 - $18,000 = $9,000 In year 0, Net…
Q: Franklin Printing Company is considering replacing a machine that has been used in its factory for…
A: Note 1: As Revenue and Non manufacturing will not be affected , the same are not considered. Note 2:…
A machine costing $257,500 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 475,000 units of product during its life. It actually produces the following units: 220,000 in 1st year, 124,600 in 2nd year, 121,800 in 3rd year, 15,200 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted. (The machine must not be
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.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- St. Johns Medical Center (SJMC) has five medical technicians who are responsible for conducting cardiac catheterization testing in SJMCs Cath Lab. Each technician is paid a salary of 36,000 and is capable of conducting 1,000 procedures per year. The cardiac catheterization equipment is one year old and was purchased for 250,000. It is expected to last five years. The equipments capacity is 25,000 procedures over its life. Depreciation is computed on a straight-line basis, with no salvage value expected. The reading of the catheterization results is conducted by an outside physician whose fee is 120 per test. The technicians report with the outside physicians note of results is sent to the referring physician. In addition to the salaries and equipment, SJMC spends 50,000 for supplies and other costs needed to operate the equipment (assuming 5,000 procedures are conducted). When SJMC purchased the equipment, it fully expected to perform 5,000 procedures per year. In fact, during its first year of operation, 5,000 procedures were run. However, a larger hospital has established a clinic in the city and will siphon off some of SJMCs business. During the coming years, SJMC expects to run only 4,200 cath procedures yearly. SJMC has been charging 850 for the procedureenough to cover the direct costs of the procedure plus an assignment of general overhead (e.g., depreciation on the hospital building, lighting and heating, and janitorial services). At the beginning of the second year, an HMO from a neighboring community approached SJMC and offered to send its clients to SJMC for cardiac catheterization provided that the charge per procedure would be 550. The HMO estimates that it can provide about 500 patients per year. The HMO has indicated that the arrangement is temporaryfor one year only. The HMO expects to have its own testing capabilities within one year. Required: 1. Classify the resources associated with the cardiac catheterization activity into one of the following: (1) committed resources, or (2) flexible resources. 2. Calculate the activity rate for the cardiac catheterization activity. Break the activity rate into fixed and variable components. Now, classify each activity resource as relevant or irrelevant with respect to the following alternatives: (1) accept the HMO offer, or (2) reject the HMO offer. Explain your reasoning. 3. Assume that SJMC will accept the HMO offer if it reduces the hospitals operating costs. Should the HMO offer be accepted? 4. Jerold Bosserman, SJMCs hospital controller, argued against accepting the HMOs offer. Instead, he argued that the hospital should be increasing the charge per procedure rather than accepting business that doesnt even cover full costs. He also was concerned about local physician reaction if word got out that the HMO was receiving procedures for 550. Discuss the merits of Jerolds position. Include in your discussion an assessment of the price increase that would be needed if the objective is to maintain total revenues from cardiac catheterizations experienced in the first year of operation. 5. Chandra Denton, SJMCs administrator, has been informed that one of the Cath Lab technicians is leaving for an opportunity at a larger hospital. She met with the other technicians, and they agreed to increase their hours to pick up the slack so that SJMC wont need to hire another technician. By working a couple hours extra every week, each remaining technician can perform 1,050 procedures per year. They agreed to do this for an increase in salary of 2,000 per year. How does this outcome affect the analysis of the HMO offer? 6. Assuming that SJMC wants to bring in the same revenues earned in the cardiac catheterization activitys first year less the reduction in resource spending attributable to using only four technicians, how much must SJMC charge for a procedure?The activity of moving materials uses four forklifts, each leased for 18,000 per year. A forklift is capable of making 5,000 moves per year, where a move is defined as a round trip from the plant to the warehouse and back. During the year, a total of 18,000 moves were made. What is the cost of the unused capacity for the moving goods activity? a. 5,400 b. 1,800 c. 7,200 d. 3,600A machine costing $257,500 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 475, 000 units of product during its life. It actually produces the following units: 220,000 in 1st year, 124,000 in 2nd year, 121,800 in 3rd year, 15,200 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.) Required: Prepare a table with the following column headings and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method.
- A machine costing $215,000 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 490,000 units of product during its life. It actually produces the following units: 122,700 in Year 1, 124,200 in Year 2, 121,000 in Year 3, 132,100 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 $207,000 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 475,000 units of product during its life. It actually produces the following units: 123,300 in Year 1, 122,500 in Year 2, 120,300 in Year 3, 118,900 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.)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 $213,200 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 488,000 units of product during its life. It actually produces the following units: 122,200 in 1st year, 124,000 in 2nd year, 121,000 in 3rd year, 130,800 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted. (The machine must not 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 $214,000 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 490,000 units of product during its life. It actually produces the following units: 122,400 in Year 1, 123,600 in Year 2, 121,000 in Year 3, 133,000 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…A machine costing $209,000 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 480,000 units of product during its life. It actually produces the following units: 122,900 in Year 1, 123,700 in Year 2, 120,000 in Year 3, 123,400 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 Compute depreciation for each year (and total depreciation of all years combined) for the machine under the…A machine costing $213,800 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 487,000 units of product during its life. It actually produces the following units: 121,400 in Year 1, 122,500 in Year 2, 120,000 in Year 3, 133,100 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 Year Year 1 Year 2 Year 3 Year 4 Total Compute depreciation for each year (and total depreciation…
- A machine costing $215,200 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 493,000 units of product during its life. It actually produces the following units: 122,300 in Year 1, 124,000 in Year 2, 120,100 in Year 3, 136,600 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 Compute depreciation for each year (and total depreciation of all years combined) for the machine…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 machine will produce 485,000 units of product during Its life. It actually produces the following units: 122,900 in Year 1, 123,900 In Year 2. 120,200 in Year 3. 126,000 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 depreclation 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. Units of Straight Line DDB Production Compute depreciation for each year (and total depreciation of all years combined) for the machine…A machine costing $209,000 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 480,000 units of product during its life. It actually produces the following units: 122,900 in Year 1, 123,300 in Year 2, 119,900 in Year 3, 123,900 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. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Straight-line depreciation. Straight-Line…