Determine the total depreciation during the year.Determine the depreciation cost chargeable to each batch of 50 cu.m produced.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
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An asphalt and aggregate mixing plant having a capacity of 50 cu.m every hour costs P2,500,000. It is estimated to process 800,000 cu.m during its life. During a certain year, it processed 60,000 cu.m. If its scrap value is P100,000, Determine the total depreciation during the year.Determine the depreciation cost chargeable to each batch of 50 cu.m produced.

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