1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kamila [148]
3 years ago
5

On January​ 1, 2018, McHenry Manufacturing Corporation purchased a machine for $ 40 600 000. ​McHenry's management expects to us

e the machine for 27 000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $ 50 000. The machine was used for 3 600 hours in 2018 and 5 comma 700 hours in 2019. Calculate the book value of the machine at the end of 2019 if the company uses the unitsminusofminusproduction method of depreciation.​ (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)
Business
1 answer:
hammer [34]3 years ago
3 0

Answer:

The book value of the machine at the end of 2019  is $26632795

Explanation:

Unit of Production method:

In this method, the depreciation is calculated based on unit levels like machine hours, direct material,etc instead of useful life.

First we have to calculate annual depreciation based on machine hour. The formula is shown below:

= ( Purchase cost - Residual value ) ÷ machine hours

= ($ 40,600,000 - $50,000) ÷ 27000

= $1501.85

Then, compute the depreciation for 2018 and 2019

Depreciation for 2018 = Annual depreciation × 2018 machine hours

                                    = $1501.85 × 3,600 hours

                                    = $5406660

Depreciation for 2019 = Annual depreciation × 2019 machine hours

                                      = $1501.85 × 5,700 hours

                                      = $8560545

Now, finally the book value can be calculated for 2019 year.

= Purchase cost - depreciation 2018 - depreciation 2019

= $ 40,600,000 - $5406660  - $8560545

= $26632795

Thus,  the book value of the machine at the end of 2019  is $26632795

You might be interested in
The attached photo below has the correct answers
Elden [556K]
Indeed they do yes Yes
6 0
3 years ago
Read 2 more answers
Initiatives intended to improve an organization's positive impact on society and the natural environment are called:
ikadub [295]

Green marketing initiatives are intended to improve an organization's positive impact on society and the natural environment.

 

To add, green marketing<span> <span>products that are presumed to be environmentally safe. It incorporates a broad range of activities, including product modification, changes to the production process, [sustainable packaging], as well as modifying advertising.</span></span>

6 0
3 years ago
Jason's Outdoors manufactures two products: snow skis and water skis. Jason's managerial accountant suspects that product cost d
Ainat [17]

Answer:

Jason's accountant should consider a single plantwide rate to correct the problem.

Explanation:

If a company manufactures products that consume factory overhead costs in different ways, a single plantwide rate may not accurately allocate factory overhead costs to the products and cause cost distortions. Cost distortions can cause companies to lose sales and make incorrect decisions on expanding production.

4 0
3 years ago
Benton Engineering Services Company incurred the following during 2016 Direct labor $94,000 Overhead 126,000 Selling expenses 11
Galina-37 [17]

Answer:

Prime cost = $94,000

<em>Conversion cost</em> =  $135,400.

Explanation:

<em>Prime cost is the addition of direct material cost , direct labor cost and direct expenses.</em>

<em>Conversion cost is the cost of converting raw materials into finished product. It s the sum of direct labour cost and production overheads.</em>

For Bento Engineering,

<em>Prime cost = direct labour cost  (since no figure is given for direct material and direct expenses.)</em>

Prime cost = $94,000

Conversion cost = Direct labour cost + overheads

<em>Conversion cost</em> = $94,000 + 126,000

                          =  $135,400.

Prime cost = $94,000

<em>Conversion cost</em> =  $135,400.

8 0
3 years ago
Pronghorn Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures we
Leokris [45]

Answer:

The interest rate for capitalization purposes will be of 11%

Explanation:

The company will average all the debt oustanding during the year

1,050,550  x 13%   =     136,571.5

2,080,800 x 10%   =   208,080

<u>3, 831,200</u>  x  11%   = <u>  421, 432  </u>

6,962,550‬                 766,083.5

a debt of 6,962,550 dollars generates 766,083.5 dollars of interest:

principal x rate = interest

rate = interest / principal

766,083.5 / 6,962,550 = 0,110029 = 11%

4 0
3 years ago
Other questions:
  • At a quantity of 130, marginal benefit equals ______ and marginal cost equals _____.
    7·1 answer
  • ________ is the active buying and selling of the domestic currency against foreign currencies.
    11·1 answer
  • Farrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March a
    6·1 answer
  • If the United States were to produce all of its own steel, rather than importing large quantities of steel from other nations, t
    8·1 answer
  • Annabey Inc., a small candy manufacturing company established in 1937, now has several large units that sell unique flavors of c
    10·1 answer
  • I’ll mark the best one with 20 points
    7·1 answer
  • AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and
    8·1 answer
  • What business entertainment expenses are deductible
    12·1 answer
  • On a financial television show, paz hears the announcer say that the country is currently experiencing a high inflation rate. ho
    12·1 answer
  • Typically the consumer price index (cpi) is calculated by checking the prices of?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!