Banko Inc. manufactures sporting goods. The following information applies to a machine purchased onJanuary 1, Year 1:Purchase priceDelivery costInstallation chargeEstimated lifeEstimated unitsSalvage estimate$ 83,600$ 3,000$1,0005 years141,000$ 3,000During Year 1, the machine produced 37,000 units and during Year 2, it produced 39,000 units. During Year 1, the machine produced 37,000 units and during Year 2, it produced 39,000 units..RequiredDetermine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods:a. Straight-lineb. Double-declining-balanceC.Units of productionYear 1Year 2

Name: Banko Inc. manufactures sporting goods. The following information app
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Banko Inc. manufactures sporting goods. The following information applies to a machine purchased onJanuary 1, Year 1:Purchase priceDelivery costInstallation chargeEstimated lifeEstimated unitsSalvage estimate$ 83,600$ 3,000$1,0005 years141,000$ 3,00

Depreciation :— it means Decrease in the Value of Fixed Assets due to their use of Assets.…

Answered: Determine the amount of depreciation…

Business

Accounting

Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods: a. Straight-line b. C. Double-declining-balance Units of production Year 1 Year 2

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9EB: Ronson recently purchased a new boat to help ship product overseas. The following information is...

See similar textbooks

Similar questions

For each of the following independent situations, calculate the missing values: 1. The Belen plant purchased 78,300 of direct materials during June. Beginning direct materials inventory was 2,500, and direct materials used in production were 73,500. What is ending direct materials inventory? 2. Forster Company produced 14,000 units at an average cost of 5.90 each. The beginning inventory of finished goods was 3,422. (The average unit cost was 5.90.) Forster sold 14,120 units. How many units remain in ending finished goods inventory? 3. Beginning work in process (WIP) was 116,000, and ending WIP was 117,300. If total manufacturing costs were 349,000, what was the cost of goods manufactured? 4. If the conversion cost is 84 per unit, the prime cost is 55, and the manufacturing cost per unit is 105, what is the direct materials cost per unit? 5. Total manufacturing costs for August were 412,000. Prime cost was 64,000, and beginning WIP was 76,000. The cost of goods manufactured was 434,000. Calculate the cost of overhead for August and the cost of ending WIP.
Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-17 Refer to the information for Barnard Company on the previous page. The total period expense is a. 276,000. b. 200,000. c. 76,000. d. 40,000. e. 36,000.
Banko Incorporated manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1. Purchase price $85,800 Delivery cost $5,000 Installation charge $2,000 Estimated life 5 years Estimated units 148,000 Salvage estimate $4,000 During Year 1, the machine produced 44,000 units, and during Year 2 it produced 46,000 units. Required Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. (Round your answers to the nearest dollar amount.) MACRS table: Year 5-Year property,% 7-Year property,% 1 20.00 14.29 2 32.00 24.49 3…
Esteban Enterprises, a farm equipment retailer, had the following units on hand as of January 1 of the current year Item Number Description Quantity Cost per Unit 1167 Horse Trailer 7 $55,000 2234 Tractor 7 42,000 4423 Hay Baler 7 22,000 During the year, it purchased the following pieces of equipment: Item Number Description Quantity Cost per Unit 2288 Tractor 7 $41,200 4467 Hay Baler 7 32,000 During the year, Esteban sold all of the units in its beginning inventory except for the Hay Baler (item 4423). It also sold the tractor that was purchased during the year (item 2288). What are Esteban's ending inventory and cost of goods sold under the specific identification method? (Enter a "0" for any zero amounts.)
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2018: purchase price 83200 delivery cost 7000 installation charge 3000 estimated life 5 years estimated units 147000 salvage estimate 5000 determine the amount of depreciation expense for 2018 and 2019 using the following methods: straight line double declining balance units of production
A commercial company bought 250 units of a certain material at a price of 50,000 dinars per unit, and the purchase expenses were until the material reached the company's stores Commission expebses=1250000 Tax expenses=1875000 Transportation, loading and unloading expenses=900000 Insurance expenses=600000 it is required to calculate the cost of the material purchased
A commercial company bought 250 units of a specific material at a price of 50,000 dinars per unit, and the purchase expenses were up to the arrival of the material. The stores of the company were my two: commission banks = 1250000 tax expenses = 1875000, transportation, loading and unloading expenses = 900000 insurance expenses = 600000 Requirement: Calculating the cost of the material purchased?
JOOVI Inc. has recently purchased and installed a new machine for its manufacturingplant. Th e company incurred the following costs:Purchase price $12,980Freight and insurance $1,200Installation $700Testing $100Maintenance staff training costs $500Th e total cost of the machine to be shown on JOOVI’s balance sheet is closest to:A. $14,180.B. $14,980.C. $15,480.
On 1-October-2011, Unique Garments Company Ltd. purchased a Stitching Unit on cash $850,000. Theuseful life of Stitching Unit is 5 years and residual value is $50,000. During its life the Stitching Unitproduces 5 million shirts. Following table shows number of units of shirts produced by in each year.Year Shirts Produced1 1,700,0002 1,300,0003 950,0004 700,0005 350,000Total 5,000,000Prepare Depreciation Schedule for Stitching Unit for 5 years under each of the following methodsa) Straight Line Depreciation Methodb) Declining Balance Methodc) Unit-of-Output Method
Worf Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year 2020. Purchase Cash paid for equipment, including sales tax of $5,000 $105,000 Freight and insurance cost while in transit 2,000 Cost of moving equipment into place at factory 3,100 Wage cost for technicians to test equipment 4,000 Insurance premium paid during first year of operation on this equipment 1,500 Special plumbing fixtures required for new equipment 8,000 Repair cost incurred in first year of operations related to this equipment 1,300 Construction Material and purchased parts (gross cost $200,000; failed to take 2% cash discount) $200,000 Imputed interest on funds used during construction (stock financing) 14,000 Labor costs 190,000 Allocated overhead costs (fixed—$20,000; variable—$30,000) 50,000 Profit on self-construction 30,000…
On January 1, 20x1, COCO Co. acquired a piece of equipment with an estimated useful life of 4 years and a residual value of ₱80,000 for a total purchase cost of ₱400,000. At normal capacity, the equipment’s estimated service life is 40,000 hours or a total productive capacity of 160,000 units of a product. In 20x1 and 20x2, the actual manufacturing hours were 16,000 and 8,000, respectively, and the actual units produced were 60,000 and 30,000, respectively. How much is the accumulated depreciation on December 31, 20x2 under each of the following depreciation methods? SLM SYD DDB UOPM (input) UOPM (output) Problem 3: ABC Co. exchanged equipment with DEF, Inc. Pertinent data are shown below: ABC Co. DEF, Inc. Equipment 4,000,000 8,000,000 Accumulated depreciation 800,000 3,200,000 Carrying amount 3,200,000 4,800,000 Fair value 3,800,000 4,400,000 Cash paid by ABC to DEF 600,000…
Al Meedaniyah Company business purchased a machine for RO 25,000. The manager estimates the value of the machine to be RO 26000 in the market. If the Business follows Historical Cost concept, the amount to be recorded for Machine is a. RO 5000 b. RO 25,000 c. RO 26,000 d. RO 1,000