Accounting Exam 2 Prep Assignment
Formulas with answers
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 |$20,000. |
Following |is |the |actual |number |of |units |produced |per |year:
2022 |= |30,000 |units
2023 |= |25,000 |units
2024 |= |0 |units |(equipment |was |idle)
2025 |= |40,000 |units
2026 |= |45,000 |units
Calculate |the |depreciation |expense |per |unit |produced |- |verified |answers(Cost |- |Salvage |Value) |/ |Total |
Units |Estimated |To |Be |Produced
(240,000 |- |20,000) |/ |140,000 |= |$ |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
Formulas with answers
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 |$20,000. |
Following |is |the |actual |number |of |units |produced |per |year:
2022 |= |30,000 |units
2023 |= |25,000 |units
2024 |= |0 |units |(equipment |was |idle)
2025 |= |40,000 |units
2026 |= |45,000 |units
Calculate |the |depreciation |expense |per |unit |produced |- |verified |answers(Cost |- |Salvage |Value) |/ |Total |
Units |Estimated |To |Be |Produced
(240,000 |- |20,000) |/ |140,000 |= |$ |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
