7.- A company buys an F46 machine for €10,000 to manufacture its ALFA product. The estimated useful life of the machine is 10 years. The manufacturing plant wants to calculate the manufactured cost per year, considering the activity level, and not invested time. The manufacturer estimates that the machine has an expected useful life of 1,000 hours, indeed the first year it worked during 200 hours. Required: 1.- Calculate the annual depreciation expense of the F46 machine for financial accounting purposes. 2.- Calculate the annual depreciation cost of the F46 machine for cost accounting purposes. Page 7/7 Adapted by Amparo Ayuso
7.- A company buys an F46 machine for €10,000 to manufacture its ALFA product. The estimated useful life of the machine is 10 years. The manufacturing plant wants to calculate the manufactured cost per year, considering the activity level, and not invested time. The manufacturer estimates that the machine has an expected useful life of 1,000 hours, indeed the first year it worked during 200 hours. Required: 1.- Calculate the annual depreciation expense of the F46 machine for financial accounting purposes. 2.- Calculate the annual depreciation cost of the F46 machine for cost accounting purposes. Page 7/7 Adapted by Amparo Ayuso
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:7.-
A company buys an F46 machine for €10,000 to manufacture its ALFA product.
The
estimated useful life of the machine is 10 years.
The manufacturing plant wants to calculate the manufactured cost per year,
considering
the activity level, and not invested time. The manufacturer estimates that the
machine
has an expected useful life of 1,000 hours, indeed the first year it worked during
200
hours.
Required:
1.- Calculate the annual depreciation expense of the F46 machine for financial
accounting purposes.
2.- Calculate the annual depreciation cost of the F46 machine for cost accounting
purposes. Page 7/7
Adapted by Amparo Ayuso
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