Sunday, May 24, 2015

2. Feng Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $42,300

Feng Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $42,300. The machine’s useful life is estimated at 10 years, or 363,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 35,000 units of product.
Required:
1. Determine the machine’s second-year depreciation using the units-of-production method.

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