Question

i followed the formula stated but got it wrong. please help

Assegment/take Assignment Main.do Minvokere assignments&takeAssignmentSessionLocator assignment-takeBinprogressefalse Book Calculator Print om Units-of-Production Method A machine is purchased January 1 at a cost of $50,000. It is expected to produce 130,000 units and have a salvage value of $1,000 at the end of its useful life Units produced are as follows: Year 1 10,000 Year 25,000 Year 12.000 Year 4 16.000 Year 5 11,000 Required: of the the method round calculations to two decimal Prepare a schedule showing depreciation for each year and the book value at the Production Method Ending Book Value Year g ing Book Value 59.000 Annual Depreciation 4074 Step 1: Depredation per Unit (Cost - Salvage ) Estimated Useful life in Units Depr.permi t s Recor Cormed Step 21 Annual Depreciation er to oure 102 in the text

Answer 1

Answer:

Depreciation per unit = (Cost – Salvage Value) / Estimated Useful Life in Units
Depreciation per unit = ($59,000 - $3,000) / 130,000
Depreciation per unit = $0.43

Depreciation Expense for Year 1 = $0.43 * 10,000
Depreciation Expense for Year 1 = $4,300

Depreciation Expense for Year 2 = $0.43 * 8,000
Depreciation Expense for Year 2 = $3,440

Depreciation Expense for Year 3 = $0.43 * 12,000
Depreciation Expense for Year 3 = $5,160

Depreciation Expense for Year 4 = $0.43 * 16,000
Depreciation Expense for Year 4 = $6,880

Depreciation Expense for Year 5 = $0.43 * 11,000
Depreciation Expense for Year 5 = $4,730

Units-of-Production Method Beginning Book Value Annual Depreciation Ending Book Value Year 59000 4300 54700 1 2 54700 3440 51260 46100 39220 3 51260 5160 46100 6880 4 39220 4730 34490