Using straight-line method and units-of-production method

Assignment Help Financial Accounting

Reference no: EM131262347

Weir Service Company purchased a copier on January 1, 2014, for $17,600 and paid an additional $340 for delivery charges. The copier was estimated to have a life of four years or 1,000,000 copies. Salvage was estimated at $1,400. The copier produced 232,000 copies in 2014 and 247,000 copies in 2015.

Required

a. Compute the amount of depreciation expense for the copier for calendar years 2014 and 2015, using Straight-line method.

b. Compute the amount of depreciation expense for the copier for calendar years 2014 and 2015, using Units-of-production method. (Round "Cost per unit" to 3 decimal places.)

c. compute the amount of depreciation expense for the copier for calendar years 2014 and 2015, using Double-declining-balance method.

Reference no: EM131262347

Questions Cloud

Purchases of shares under the employee share purchase plan : In order to encourage employee ownership of the company’s $1 par common shares, Washington Distribution permits any of its employees to buy shares directly from the company through payroll deduction. Prepare the appropriate journal entry to record th..

Maximum amount you would be willing to pay today for annuity : You are offered an annuity that will pay you $9,000 at the end of each of the next 10 years. What is the maximum amount you would be willing to pay today for this annuity?

The expenditure was for routine maintenance : Apac Construction Company purchased a forklift for $108,400 cash. It had an estimated useful life of four years and a $11,100 salvage value. At the beginning of the third year of use, the company spent an additional $9,330 that was related to the for..

Standard direct labor-hour and fixed manufacturing : Morton Company’s variable manufacturing overhead should be $4.50 per standard direct labor-hour and fixed manufacturing should be $270,000 per year. The company manufactures a single product that requires two direct labor-hours to complete. The direc..

Using straight-line method and units-of-production method : Weir Service Company purchased a copier on January 1, 2014, for $17,600 and paid an additional $340 for delivery charges. The copier was estimated to have a life of four years or 1,000,000 copies. Compute the amount of depreciation expense for the co..

Compute the predetermined overhead rate : Morton Company’s variable manufacturing overhead should be $4.50 per standard direct labor-hour and fixed manufacturing should be $270,000 per year. Assume that the company chooses 30,000 direct labor-hours as the denominator level of activity. Compu..

What merchandise inventory costing methods : What merchandise inventory costing methods can be used, what type of company is best suited for each, and which is better during an inflationary period?

How does a merchandiser differ from a service provider : How does a merchandiser differ from a service provider? What are the two different merchandise inventory systems? Explain them and a benefit of each. How does a sales of merchandise get recorded under the perpetual system?

Prorated to inventories and cost of goods sold : Sail New England prduces small sailboats for beginning sailors and for small boat regattas. Sales in the most recent year were $5,000,000 with profits before taxes of $600,000. Annual S,G,& A expenses are approximaely $1000,000, direct materials and ..

User Account

All Pages