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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, 123,700 in Year 2, 120,300 in Year 3, 130,100 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.) Complete this question by entering your answers in the tabs below. Straight Line 1 Year Units of Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production, Year Year Units Answer is complete but not entirely correct. DDB 122,900 123.700 Units of Production Depreciable Units Depreciation per unit 0.40 121,900 $ 122.500 040 Depreciation Expense 48,760 49,000

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, 123,700 in Year 2, 120,300 in Year 3, 130,100 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.) Complete this question by entering your answers in the tabs below. Straight Line 1 Year Units of Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production, Year Year Units Answer is complete but not entirely correct. DDB 122,900 123.700 Units of Production Depreciable Units Depreciation per unit 0.40 121,900 $ 122.500 040 Depreciation Expense 48,760 49,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1 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, 123,700 in Year 2, 120,300 in Year 3, 130,100 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. 2 3 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.) 4 Straight Line Complete this question by entering your answers in the tabs below. 1 a Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production, Year Straight Line Year Year Year Year Year Units of Production Year Total Year Units 122,900 123.700 Complete this question by entering your answers in the tabs below. Units of Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Answer is complete but not entirely correct. DDB Units 122,900 123,700 120,300 130,100 Units of Production Depreciable Units Depreciation per unit 0.40 0:40 121,900 $ 122.500 x s DDB Units of Production Depreciable Units Depreciation Expense 48 760 121,900 $ 122,500 $ 120,700 S $ 121,900 $ S 487,000 49,000 x Depreciation per unit 0.40 0.40 0.40 0.40 < Straight Line Depreciation Expense $ $ 48,760 X 49,000 X 48,280 X 48,760 X 194,800 DDB >
Transcribed Image Text:1 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, 123,700 in Year 2, 120,300 in Year 3, 130,100 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. 2 3 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.) 4 Straight Line Complete this question by entering your answers in the tabs below. 1 a Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production, Year Straight Line Year Year Year Year Year Units of Production Year Total Year Units 122,900 123.700 Complete this question by entering your answers in the tabs below. Units of Production Compute depreciation for each year (and total depreciation of all years combined) for the machine under the Units of production. Answer is complete but not entirely correct. DDB Units 122,900 123,700 120,300 130,100 Units of Production Depreciable Units Depreciation per unit 0.40 0:40 121,900 $ 122.500 x s DDB Units of Production Depreciable Units Depreciation Expense 48 760 121,900 $ 122,500 $ 120,700 S $ 121,900 $ S 487,000 49,000 x Depreciation per unit 0.40 0.40 0.40 0.40 < Straight Line Depreciation Expense $ $ 48,760 X 49,000 X 48,280 X 48,760 X 194,800 DDB >
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