The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation . Given: A machine was purchased for $90,000. The machine has salvage value of $6,000 and useful life of 5 years. The machine can operate for 100,000 hours. The machine as follows: 20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019. (a) To compute: The annual depreciation under each of the following depreciation methods. (1) Straight-line method. (2) Activity method. (3) Sum-of-the-years’-digits method. (4) Double-declining-balance method.

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Answer 1

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Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

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Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $75,600 on account. 2. Incurred factory labor costs of $58,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various other…

General Accounting question

Answer 2

Question

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

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Answer 3

Question

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Answer 6

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

Answer 7

Chapter 11, Problem 11P

To determine

Introduction: The value of an asset decreases over a period of time due to wear and tear. This reduction in the value of asset is termed as depreciation.

Given:

A machine was purchased for $90,000.

The machine has salvage value of $6,000 and useful life of 5 years.

The machine can operate for 100,000 hours.

The machine as follows:

20,000 hours in 2015; 25,000 hours in 2016; 15,000 hours in 2017; 30,000 hours in 2018; 10,000 hours in 2019.

(a) To compute: The annual depreciation under each of the following depreciation methods.

(1) Straight-line method.

(2) Activity method.

(3) Sum-of-the-years’-digits method.

(4) Double-declining-balance method.

Answer 8

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Answer 9

To determine

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 11 - Prob. 1Q Ch. 11 - 2. Identify the factors that are relevant in...Ch. 11 - Prob. 3Q Ch. 11 - Prob. 4Q Ch. 11 - Prob. 5Q Ch. 11 - Prob. 6Q Ch. 11 - 7. What basic questions must be answered before...Ch. 11 - Prob. 8Q Ch. 11 - Prob. 9Q Ch. 11 - 10. What are the major factors considered in...

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(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.

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Chapter 11 Solutions

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(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.) (1) Straight-line method. (2) Sum-of-the-years’-digits method. (3) Double-declining-balance method.

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Chapter 11 Solutions

(b) To compute: The annual depreciation expenses over the life of the asset applying the following methods. (Assume a fiscal year-end of September 30.)

(1) Straight-line method.

(2) Sum-of-the-years’-digits method.

(3) Double-declining-balance method.