AC 302 CHAPTER 11 QUESTION 4

AC 302 CHAPTER 11 QUESTION 4
Name				Date		
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E11-4 (Depreciation Computations—Five Methods) Wenner Furnace Corp. purchased machinery 						
for	$279,000 	on May 1, 2012. It is estimated that it will have a useful life of 				
10 	years, salvage value of		$15,000 	, production of		240,000 
units, and working hours of		25,000 	. During 2013, Wenner Corp. uses the machinery for			
2,650 	hours, and the machinery produces			25,500 	units.	
						
Instructions:						
From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round to the nearest dollar.)						
						
(a) Straight-line (Note - Utilize Excel formula =SLN(Cost,Salvage,Life) to solve the problem.)						
			Formula			
						
"(b) Units-of-output (Note: Since units-of-production has an ""s"" in it, utilize salvage value in computing
     period depreciation.)"						
						
Cost:			Amount			
Salvage value:			Amount			
Depreciable value:			Formula			
Life units expected:			Number			
Depreciation per unit:			Formula			
Period units:			Number			
Period depreciation:			Formula			
						
"(c) Working hours (Note: Working hours is a ""units-of-production"" method and since units-of-
      production has an ""s"" in it, utilize salvage value in computing period depreciation.)"						
						
Cost:			Amount			
Salvage value:			Amount			
Depreciable value:			Formula			
Hours of expected life:			Number			
Depreciation per hour:			Formula			
Period hours:			Number			
Period depreciation:			Formula			
						
"(d) Sum-of-years-digits (Note - Utilize Excel formula =SYD(Cost,Salvage,Life,Period) to solve the
     problem.) (Note: Second year covers two depreciation periods.)"						
						
First part of 2013		Formula	Time period factor		Formula	
Second part of 2013		Formula	Time period factor		Formula	
					Formula	
						
"(e) Declining balance, (10 year life, DDB results in 20% annual rate, use 200% for Factor in Excel).
     (Note: Utilize Excel formula =DDB(Cost,Salvage,Life,Period,Factor) to solve the problem.
     (Note: Second year covers two depreciation periods.)"						
						
						
First part of 2013		Formula	Time period factor		Formula	
Second part of 2013		Formula	Time period factor		Formula	
					Formula