Assignments: ACC 2011001 Chapter 9Quz utions C chegg.com Find on page the compan

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Assignments: ACC 2011001 Chapter 9Quz utions C chegg.com Find on page the company ex No results Options ACCOUNTING Chapter 9 Quiz Question 3 (of 12) SB The Doodad Company purchases IThe fowowing miormation applies to the questions displayed given belowl The Doodad Company purchases a machine for $440,000. The machine has an estimated residual value of 540,000. The comparry expects the machine to produce eight million units The machine is used to make 700,000 units durng the current pertod References Section Break 3. 100 points MC Qu.92 If the units-of-production method is s-of-produ the deprecialion oxpen r this periud is Type here to search

Explanation / Answer

Amounts are in $ Purchase cost of the machine 4,40,000.00 Estimated residual value      54,000.00 Purchase cost to be allocated over machine 3,86,000.00 life i.e depreciation to be provided And the Doodad company uses units-of-production method of providing depreciation According to this method depreciation for a period is as follows (Units produced in current period/Total no.of units init's life time)*Value to be depreciated (700,000/8,000,000)*386,000=33,775 Depreciation expense for the period is $ 33,775 Please gives thumps if you like the solution

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