Machiel Manufacturing acquired a $60,000 machine on January 1,20X9.The machine is estimated to have a useful life of 4 years,and a residual value of $10,000.For units-of-production depreciation purposes,the machine is expected to produce 500,000 units.If Machiel Manufacturing uses units-of-production depreciation,and the company produces 80,000 units in 20X9,what will be the depreciation expense for 20X9?
A)$5,760
B)$6,400
C)$7,200
D)$8,000
E)$8,800

Question

Quizplus · Accepted Answer

The depreciation expense is calculated by determining the depreciation cost per unit, which is ($60,000 - $10,000) / 500,000 units = $0.10 per unit. For 80,000 units produced, the depreciation expense is 80,000 units * $0.10 = $8,000.

Machiel Manufacturing Acquired a $60,000 Machine on January 1,20X9