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Posted: June 27th, 2022
Unit-of-Production Method Assignment
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was $32,000. Its estimated residual value was $10,000 at the end of estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,200 units in 2018 and 1,650 units in 2019. Required: a. Calculate depreciation expense for 2018 and 2019 using the straight-line method.
b. Calculate the depreciation expense for 2018 and 2019 using the unit-of-production method. C. Calculate depreciation expense for 2018 through 2022 using the double-declining balance method. Get Accounting homework help today
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