Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

تمرين 51

On January 2, Manning Co. purchases and installs a new machine costing $324,000 with a five-year life and an estimated $30,000 salvage value. Management estimates the machine will produce 1,470,000 units of product during its life. Actual production of units is as follows: 355,600 in 1st year, 320,400 in 2nd year, 317,000 in 3rd year, 343,600 in 4th year, 138,500 in 5th year. The total number of units produced by the end of year 5 exceeds the original estimate-this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.)