Question

10 Required informetion Use the following information for the Exerčises below. r3 [The following information applies to the questions displayed below] 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 Exercise 8-5 Units-of-production depreciation LO P1 Determine the machine's second-year depreciation using the units-of-production method. Units of production Deprecietion Choose Numerator: Annual Depreciation Expense Choose Denominator: Depreciation expense per unit 0 Year Annual Production (units) Depreciation Expense 2

Answer 1

Unit-of-production Depreciation Numerator 7 Denominator Cost - Salvage 7 units of product 39400 171 394000 Annual Production (units)| Depreciation Expense 33400 3340 = | Annual Depreciation Expense = Depreciation expense per unit 0.10 Year