The Following Machines Were Purchased During 2013

question 231

Essay

The following machines were purchased during 2013:
Machine A for $12,000 on April 7
Machine B for $8,000 on August 28
Machine C for $10,000 on November 5
Assuming that each machine has an estimated useful life of six years and a 10 percent residual value,calculate total depreciation expense for 2013 (assume that the company depreciates the asset on straight-line basis,reports on a calendar-year basis and rounds to the nearest month).

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Definitions:

Job Order Cost System

An accounting method that accumulates costs for each individual job or project, tracking materials, labor, and overhead.

Uniform Products

Products that are identical in quality and performance, manufactured to meet a standard specification.

Cost Accounting

An area of accounting that involves measuring, recording, and reporting product costs.

Product Costs

Costs that are directly tied to the production of goods or services, including raw materials and labor.