Accounting Exam 2 Prep Assignment
Formulas
Depreciation - Units of Production Method
On January 1, 2022, equipment costing $240,000 was purchased and placed in service.
The equipment is expected to produce 140,000 units during its useful life and has
estimated salvage value of $20,000.
Following is the actual number of units produced per year:
2022 = 30,000 units
2023 = 25,000 units
2024 = 0 units (equipment was idle)
2025 = 40,000 units
2026 = 45,000 units
Calculate the depreciation expense per unit produced - ANS-(Cost - Salvage Value) /
Total Units Estimated To Be Produced
(240,000 - 20,000) / 140,000 = $ 1.57
Depreciation - Units of Production Method
On January 1, 2022, equipment costing $240,000 was purchased and placed in service.
The equipment is expected to produce 140,000 units during its useful life and has
estimated salvage value of $20,000.
Following is the actual number of units produced per year:
2022 = 30,000 units
2023 = 25,000 units
2024 = 0 units (equipment was idle)
2025 = 40,000 units
2026 = 45,000 units
Calculate the depreciation expense for 2025 - ANS-Units Actually Produced In 2025 X
Depreciation Expense Per Unit
Formulas
Depreciation - Units of Production Method
On January 1, 2022, equipment costing $240,000 was purchased and placed in service.
The equipment is expected to produce 140,000 units during its useful life and has
estimated salvage value of $20,000.
Following is the actual number of units produced per year:
2022 = 30,000 units
2023 = 25,000 units
2024 = 0 units (equipment was idle)
2025 = 40,000 units
2026 = 45,000 units
Calculate the depreciation expense per unit produced - ANS-(Cost - Salvage Value) /
Total Units Estimated To Be Produced
(240,000 - 20,000) / 140,000 = $ 1.57
Depreciation - Units of Production Method
On January 1, 2022, equipment costing $240,000 was purchased and placed in service.
The equipment is expected to produce 140,000 units during its useful life and has
estimated salvage value of $20,000.
Following is the actual number of units produced per year:
2022 = 30,000 units
2023 = 25,000 units
2024 = 0 units (equipment was idle)
2025 = 40,000 units
2026 = 45,000 units
Calculate the depreciation expense for 2025 - ANS-Units Actually Produced In 2025 X
Depreciation Expense Per Unit
