Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year...

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $45,900. The machine's useful life is estimated at 10 years, or 389,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 32,900 units of product.

1.Determine the machine’s second-year depreciation using the double-declining-balance method

2，Determine the machine’s second-year depreciation and year end book value under the straight-line method.

3.Determine the machine’s second-year depreciation using the units-of-production method.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Ramirez company installs a computerized manufacturing machine in its factory at the beginning of the year...

Ramirez company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine's useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product. A. Determine the machine's second year depreciation and year end book value under the straight-line method. B. Determine the machine's second year depreciation using the units-of-production method. C. Determine...

*need to check my answers: Question 1: Ramirez Company installs a computerized manufacturing machine in its...

*need to check my answers: Question 1: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine’s useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product. Determine the machine’s second-year depreciation under the: A. Straight-line = my answer is $3850 just need to check B. units of production=...

9. Wickland Company installs a manufacturing machine in its production facility at the beginning of the...

9. Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $85,000. The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 82,000 units of product. Determine the machines' second year depreciation under the units-of-production method. Select one: a. $16,900 b. $15,600 c. $15,990 d. $17,425 e. $20,880 13. Gaston owns equipment that...

Pacific Manufacturing company installs a new manufacrutrin machine that operates on wireless transmission from its operator...

Pacific Manufacturing company installs a new manufacrutrin machine that operates on wireless transmission from its operator in another party of the company. the machine was purchased and operational on January 2, 2019 at a cost of 150,000. the machine's estimated useful life is 8 years, or 500,000 units of production with a salvage value of 10,000$ during the third year of operation the machine produced 40,000 units. 1) what is the describtion expense for the third year using the straight...

Hanson Manufacturing Company purchased a machine for $1,060,000 at the beginning of 2018. The machine has...

Hanson Manufacturing Company purchased a machine for $1,060,000 at the beginning of 2018. The machine has an estimated useful life of five years and an estimated residual value of $270,000. The machine, which is expected to last 20,000 hours, was operated 3,000 hours in 2018 and 2,000 hours in 2019. REQUIRED: 1. Compute the annual depreciation for 2018 and 2019 under the following depreciation methods. You must show all of your work to receive any credit. (a) Straight-line: ...

Company ABC acquired a machine at the beginning of the year. The machine had a 6-year...

Company ABC acquired a machine at the beginning of the year. The machine had a 6-year useful life. He expensed the entire acquisition cost in the current year. His error has what effect on current period net income (NI) and retained earnings at the end of the 4th year (RE4)? a. NI is understated; RE4 is understated b. NI is understated; RE4 is correct c. NI is overstated; RE4 is correct d. NI is overstated; RE4 is understated e. None...

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $327,691 and direct labor hours would be 46,813. Actual factory overhead costs incurred were $344,427, and actual direct labor hours were 51,254. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$31,087 underapplied b.$14,351 overapplied c.$14,351 underapplied d.$358,778 overapplied

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $540,000 and direct labor hours would be 45,000. Actual factory overhead costs incurred were $566,000, and actual direct labor hours were 47,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the...

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $344,000 and direct labor hours would be 45,000. Actual manufacturing overhead costs incurred were $316,200, and actual direct labor hours were 54,400. The entry to apply the factory overhead costs for the year would include a a.debit to Factory Overhead for $316,200 b.credit to Factory Overhead for $344,000 c.credit to Factory Overhead for $415,616 d.debit...

Northern Corporation purchased and placed in service a manufacturing machine at the beginning of the year...

Northern Corporation purchased and placed in service a manufacturing machine at the beginning of the year 1 at a cost of $100,000. The machine’s useful life is estimated at 10 years, or 500,000 units of product, with a $5,000 salvage value. Prepare the journal entry to record the acquisition of the manufacturing machine. Account DR CR b. Determine the depreciation expense on the machine at the end of year 1 year under the straight-line method of depreciation. Also, record the...

Subjects