A machine costing $210,000 with a four-year life and an estimated $16,000 salvage value is Installed in Luther Company'sfactory on January 1. The factory manager estimates the machine will produce 485.000 units of product during its life. Itactually 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 totalnumber of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. (The machinecannot be depreclated below its estimated salvage value.)Required:Compute depreclation for each year (and total depreclation of all years combined) for the machine under each depreclationmethod. (Round your per unit depreclatlon to 2 decimal places. Round your answers to the nearest whole dollar.)Complete this question by entering your answers in the tabs below.Units ofStraight LineDDBProductionCompute depreciation for each year (and total depreciation of all years combined) for the machine under the Double-declining-balance.DDB Depreciation for the PeriodEnd of PeriodBeginning ofPeriod BookValueDepreciation DepreciationRateAccumulatedYearBook ValueExpenseDepreciation234Total< Units of ProductionDDB >olololo A machine costing $210,000 with a four-year life and an estimated $16,000 salvage value is Installed in Luther Company'sfactory on January 1. The factory manager estimates the machine will produce 485,000 units of product during Its life. Itactually 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 totalnumber of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. (The machinecannot 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 depreciationmethod. (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 ofStraight LineDDBProductionCompute depreciation for each year (and total depreciation of all years combined) for the machine under the Units ofproduction.Units of ProductionDepreciableUnitsDepreciationper unit0.40DepreciationExpenseYearUnits122,900122,900 s2123,9000.403120,2000.404128,0000.40Total122,900< Straight LineDDB >

Depreciation under straight-line method = ( Historical cost- Salvage value)/Useful life Depreciation…

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. 128,000 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 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. Units of Straight Line DOB Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance. DDB Depreciation for the Period End of Period Beginning of Period Book Value Depreciation Depreciation Rate Accumulated Depreciation Year Book Value Éxpense 2 3 4 Total « Units of Production DDB

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. 128,000 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 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. Units of Straight Line DOB Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Double- declining-balance. DDB Depreciation for the Period End of Period Beginning of Period Book Value Depreciation Depreciation Rate Accumulated Depreciation Year Book Value Éxpense 2 3 4 Total « Units of Production DDB

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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Assume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of the year at a cost of $24,000. The estimated useful life was four years, and the residual value was $2,580. Assume that the estimated productive life of the machine was 10,200 hours. Actual annual usage was 4,080 hours in Year 1; 3,060 hours in Year 2; 2,040 hours in Year 3; and 1,020 hours in Year 4. Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Complete a depreciation schedule using the units-of-production method. Note: Use two decimal places for the per unit output factor. Do not round intermediate calculations. Year Depreciation Expense At acquisition 1 2 3 4 Accumulated Depreciation Net…
A company pays $251,950 cash for a truck expected to last six years and have a $30,000 salvage value. The following costs relate to the truck. January 1 Paid $17,050 cash for a new component that increased the truck's productivity. March 1 Paid $4,263 cash for minor repairs (broken tailgate) necessary to keep the truck working well. November 7 Paid $10,000 cash for significant repairs to increase the useful life of the truck from six to nine years. Prepare journal entries to record these transactions.
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A machine costing $217,600 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 494,000 units of product during its life. It actually produces the following units: 122,200 in Year 1, 124,300 in Year 2, 120,000 in Year 3, 137,500 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…
Fleet Sports purchased a production machine with a cost of $180,000 at the beginning of 2019. Transportation costs to get the machine ready were $5,000. An additional $15,000 of labor costs were incurred to assemble the machine. The equipment has an estimated life of 10 years or 100,000 snowboards (units of product). The estimated residual value is $20,000. During 2019, 17,000 snowboards (units of product) were produced with this machinery. Determine the following, and show your work: 4.What is the book value of the equipment at the end of 2020 using straight-line depreciation? 5.What is depreciation expense for the equipment at the end of 2019 using double-declining balance depreciation? 6What journal entry is needed at the end of 2020 to record depreciation expense using double-declining balance depreciation?
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine's useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product. Exercise 8-6 Double-declining-balance depreciation LO P1 Determine the machine's second-year depreciation using the double-declining-balance method. Double-declining-balance Depreciation es Annual Depreciation Expense Depreciation expense Choose Factors: Choose Factor(%) !! First year's depreciation Second year's depreciation %3D
13. South Bend Hardware Company has a giant paint mixer that cost $31,500. The estimated salvage value of the paint mixer at the end of its useful life of 15 years is estimated to be $1,500. South Bend estimates that the machine can mix 200,000 cans of paint during its lifetime. During the first year of operations, the machine mixed 10,000 cans of paint; during the second it mixed 25,000 cans; during the third it mixed 20,000 cans of paint. 1. Compute depreciation expense for the THIRD year of the paint mixer's life under each of the following methods. Straight-line Units-of production Double-declining balance I 2. Show how the paint mixer would be reported on the balance sheet at the end of the third year assuming that they used the straight-line method.
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A machine’s first cost is $60,000 with salvage values over the next 5 years of are $50K, $40K, $32K, $25K, and $12K. The annual operating and maintenance costs are the same every year. Determine the machine total cost.
Assume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of the year at a cost of $28,000. The estimated useful life was four years, and the residual value was $2,560. Assume that the estimated productive life of the machine was 10,600 hours. Actual annual usage was 4,240 hours in Year 1; 3,180 hours in Year 2; 2,120 hours in Year 3; and 1,060 hours in Year 4. Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Complete a depreciation schedule using the straight-line method. Year Depreciation Expense At acquisition 1 2 3 Accumulated Depreciation Net Book Value
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: 123,000 in Year 1, 122,500 in Year 2, 119,800 in Year 3, 137,700 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…
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