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Mumz [18]
3 years ago
14

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $154,000.

The machine's useful life is estimated to be 5 years, or 370,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 59,200 units of product. Determine the machines' second year depreciation under the straight-line method
Business
1 answer:
I am Lyosha [343]3 years ago
4 0

Answer:

Using the straight-line method, depreciation expense for the second year would be:  $29,600

Explanation:

Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

Wickland Company

Cost of machine  $154,000

Residual value of $6,000

Useful Life = 5 years

Formula

Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

Working:

Depreciation Straight Line Method= $154,000 -$6,000/5

Depreciation Straight Line Method= 148,000 /5

Depreciation Straight Line Method=$ 29,600

Using the straight-line method, depreciation expense for the second year would be:  $29,600

The straight line depreciation method assigns equal depreciation to the machinery. So the depreciation for the five years would be the same amounting to $ 29,600 every year.

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Answer: The shares are deducted rather than added

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The adjustment to the weighted-average shares for retired shares is the same as for issuing new shares when the shares are added rather than deducted, the shares are treated as being acquired at the end of the year and the shares are treated as being acquired at the beginning of the year.

Therefore, the adjustment to the weighted-average shares for retired shares is the same as for issuing new shares except when the shares are deducted rather than added.

4 0
3 years ago
Someone please help me.
Elanso [62]
In my understanding, this assignment wants you to evaluate the decision made by the management officer, in her attempt to improve the business position.

First of all, net profit figure shows the profitability of the business. Net profit figure means the total profit earned minus all the costs incurred in running the business. Higher net profit figure in year 1 might indicate a favourable position, as it could be that higher profit is generated from using whatever method/machine they use in year 1, or running this machine incurred less cost. In year 2, they didn't necessarily earn lower profit, but running the new machine might be more costly.

Next, rate of productivity growth refers to the growth in quantity of output produced. If more output can be produced, this means higher efficiency. This means that the efficiency of production in year 2 is more than in year 1.

Thirdly, the number of customer's complaints is important in evaluating the business' goodwill, in this case, its position in the society. Without good relationship with the public, a company may lose its customer. It is always important to keep clients satisfied since they're the source of income to the business. This means that the management decision in year 2 is more favourable than in year 1.

Last but not least, rate of absenteeism can be evaluated in terms of productivity . Higher absenteeism means lower productivity, lower output but higher cost to the business since they're paying salaries to workers who don't produce output to sell. Less output to sell means less income can be earned. In year 1, the business productivity is higher than in year 2.

In year 2, the business has a boost in their efficiency & reputation. Although less profit earned, it is likely that this will grow in the future. Staff attendance can be improved by encouragement such as giving incentives for example, provision of more holidays.

I hope this is helpful!
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In the scenario presented above, we can see that Madeline is motivated to take on more clients due to the fact that she perceives that her needs will increase.

Therefore, the correct option to this question is that Madeline's motivation is due to need or deficiency.

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