A mixing plant having a capacity of 50 cu. m. every hour costs P2,500,000. It is estimated to process 800,000 cu. m. during its life. During a certain year it processed 60,000 cu. m. If its scrap value is P100,000, determine the total depreciation cost chargeable to each batch of 50 cu. m. using Service-Output-Method.

A mixing plant having a capacity of 50 cu. m. every hour costs P2,500,000. It is estimated to process 800,000 cu. m. during its life. During a certain year it processed 60,000 cu. m. If its scrap value is P100,000, determine the total depreciation cost chargeable to each batch of 50 cu. m. using Service-Output-Method.

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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