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
Related questions
Question
Fast answer

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
AI-Generated Solution
Unlock instant AI solutions
Tap the button
to generate a solution
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