37 Wickland Company installs a manufacturing machine in its production facility

Question

37

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $97,000. The machine's useful life is estimated to be 20 years, or 340,000 units of product, with a $3,000 salvage value. During its second year, the machine produces 13,600 units of product. Determine the machines' second year depreciation under the units-of-production method. (Do not round intermediate calculations.)

$3,760.

$4,700.

$4,850.

$3,880.

$5,000.

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $97,000. The machine's useful life is estimated to be 20 years, or 340,000 units of product, with a $3,000 salvage value. During its second year, the machine produces 13,600 units of product. Determine the machines' second year depreciation under the units-of-production method. (Do not round intermediate calculations.)

Explanation / Answer

cost = 97000

life =20 years

units produced= 13600

total units = 340000

salvage value = 3000

Depreciation = Number of Units Produced/ Life in Number of Units × (Cost Salvage Value)

= 13600 / 340000 * (97000-3000)

= $3760

ANSWER =A) $3760

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.