Use the following information for the exercises below. [the following information applies to the questions displayed below.] ramirez company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $84,600. the machine's useful life is estimated at 20 years, or 393,000 units of product, with a $6,000 salvage value. during its second year, the machine produces 33,300 units of product. exercise 8-5 units-of-production depreciation lo p1 determine the machine’s second-year depreciation using the units-of-production method.

$6,600

Explanation:

Depreciation per units-of-production method:

Depreciation per unit = (cost computerized manufacturing machine - salvage value) / machine's useful units of product.

Depreciation per unit = ($84,600 - $6,000) / 393,000 units

Depreciation per unit = $78,600 / 393,000 units

Depreciation per unit = $0.2 per unit

Machine’s second-year depreciation:

Depreciation second-year = depreciation per unit * second-year units of product

Depreciation second-year = $0.2 * 33,300 units

Depreciation second-year = $6,600

the clients (funders) and customers (individual nonprofit staff) are great to work with. that i can be open about being a person of faith when appropriate. the variety of my tasks each day.