Question

Required information The following information applies to the questions displayed below. Part 2 of 3 Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 33,400 units of product. points Determine the machine's second-year depreciation using the units-of-production method. eBook Choose Numerator: Units-of-production Depreciation 1 Choose Denominator: = = Annual Depreciation Expense Depreciation expense per unit Hint Depreciation Expense Print Year Annual Production (units) 2

Answer 1

Ans: & no. of one in the year Depreciation Expense & Depreciable value D Total units Produced Depreciable value & cost of the Asset - salvage value cost of the Asset = $48,400 salvage value = $9000 pepreciable value = $48,400-$9000 $ 39,400 Total units produced - 394,000 units choose Numerator / Choose senominator 2 Annual Depreciation factor/Expense oppreciable value Total units & Depreciation Expense per unit $39,400 394,000 units & $0.10 Per unit Year Annual Production (units Depreciation Experise 2 33,400 units $3.340 (33, 400x $0.10)