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Ramirez Company installs a computerized manufacturing machine inits factory at the beginning of the year at a cost of $44,200. Themachine's useful life is estimated at 10 years, or 392,000 units ofproduct, with a $5,000 salvage value. During its second year, themachine produces 33,200 units of product.
Exercise 8-5 Units-of-production depreciation LO P1
Determine the machine’s second-year depreciation using theunits-of-production method.
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| Units-of-production Depreciation | | Choose Numerator: | / | Choose Denominator: | = | Annual Depreciation Expense | | | / | | = | Depreciation expense per unit | | | / | | = | 0 | Year | Annual Production (units) | | Depreciation Expense | | 2 | | | |
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