What would be the depreciation expense in year 1, using units-of-production, for a molding machine that cost $25,000, had a useful life of 8 years, and an estimated total machine hours of 30,000? The salvage value is $3,000 and production in year 1 was 8,000 hours. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The depreciation expense using the units-of-production method is calculated by [(Cost - Salvage Value) / Total Estimated Units of Production] * Units Produced in Year 1. Here, it's [($25,000 - $3,000) / 30,000] * 8,000 = $5,840.

What Would Be the Depreciation Expense in Year 1, Using