Ramirez Company installs a computerized manufacturing machine in its factory at
ID: 2482868 • Letter: R
Question
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,500. The machine's useful life is estimated at 5 years, or 405,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 38,500 units of product
Determine the machine’s second-year depreciation using the units-of-production method.
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,500. The machine's useful life is estimated at 5 years, or 405,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 38,500 units of product
Explanation / Answer
Deapriciation for Second year is using the units of production method : $ 3,850
Working as below
Cost of machine 49500 Salvage Value 9000 Net Value 40500 Total Units to be produced 405000 Depriciation per Unit 0.10 Units produce in second year 38500 Depriciation for second year 3850Related Questions
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