E11-4 (Depreciation Computations-Five Methods)

Wenner Furnace Corp. purchased machinery for $633,330 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $34,050, production of 544,800 units, and working hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 57,885 units.

From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round answers to 0 decimal places, e.g. $45,892)

a. Straight-line.

b. Units-of-output. (Round depreciation cost per unit to 2 decimal places, i.e. 12.25 and and final answer to 0 decimal places, i.e. 25,240.)

c. Working hours.

d. Sum-of-the-years’-digits.

e. Declining-balance (use 20% as the annual rate).