Question

Fontaine Ltd. acquired a machine for $600,000 on January 1, 2022. The machine has a salvage value of $10,000 and a five-year useful life. Fontaine expects the machine to run for 15,000 machine hours. The machine was actually used for 4,800 hours in 2022 and 3,150 hours in 2023. What amount would Fontaine record as depreciation expense for 2022 if the units-of-production method were used? (Note: Round your answer to the nearest hundred dollars.)

Name: fontaine ltd acquired a machine for 600000 on january 1 2022 the machine has a salvage value of 10000 and a five year useful life fontaine expects the machine to run for 15000 machine hours 50974
Uploaded: 2022-07-10T11:47:09-08:00
Duration: 3 min 3 s
Channel: Manasvee Singh
Description: fontaine ltd acquired a machine for 600000 on january 1 2022 the machine has a salvage value of 10000 and a five year useful life fontaine expects the machine to run for 15000 machine hours 50974

          Fontaine Ltd. acquired a machine for $600,000 on January 1, 2022. The machine has a salvage value of $10,000 and a five-year useful life. Fontaine expects the machine to run for 15,000 machine hours. The machine was actually used for 4,800 hours in 2022 and 3,150 hours in 2023.
What amount would Fontaine record as depreciation expense for 2022 if the units-of-production method were used? (Note: Round your answer to the nearest hundred dollars.)

Added by Steven H.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Manasvee Singh

07/10/2022

Step 1

This is done by subtracting the salvage value from the cost of the machine and then dividing by the total expected machine hours. So, the depreciation rate per unit is ($600,000 - $10,000) / 15,000 = $39.33 per machine hour. Show more…

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Fontaine Ltd. acquired a machine for $600,000 on January 1, 2022. The machine has a salvage value of $10,000 and a five-year useful life. Fontaine expects the machine to run for 15,000 machine hours. The machine was actually used for 4,800 hours in 2022 and 3,150 hours in 2023. What amount would Fontaine record as depreciation expense for 2022 if the units-of-production method were used? (Note: Round your answer to the nearest hundred dollars.)