Find the annual amount of depreciation using the units-of-production method. Round to the nearest dollar.
-Depreciation per unit: $0.36
Units of production: 23,000

Question

Quizplus · Accepted Answer

To find the annual amount of depreciation using the units-of-production method, we multiply the depreciation per unit by the actual number of units produced each year. 
Annual depreciation = Depreciation per unit x Units of production 
Annual depreciation = $0.36 x 23,000 
Annual depreciation = $8,280. Therefore, the answer is B. Annual depreciation = (Depreciation per unit) x (Units of production)

Annual depreciation = $0.36 x 23,000

Annual depreciation = $8,280

Therefore, the answer is B.

Find the Annual Amount of Depreciation Using the Units-Of-Production Method