The Widget Tool and Die Company buys a $600,000 stamping machine that has an estimated residual value of $120,000. The company expects the machine to produce eight million units. It makes 520,000 units during the current period. rev: 03-02-2011 5. award: 10 out of 10.00 points If the units-of-production method is used, the depreciation rate is: rev: 03-02-2011 $0.92 per unit. $0.23 per unit. correct $0.06 per unit. $1.15 per unit. Depreciation rate per unit = (Cost − Residual Value) × (1 ÷ Estimated Total Production) $0.06 = $600,000 − $120,000 × 1 ÷ 8,000,000 6. award: 10 out of 10.00 points If the units-of-production method is used, the depreciation expense for this period is: rev: 03-02-2011 $520,000. $39,000. $400,000. correct $31,200. $0.06 (deprecation rate) × 520,000 (units current period) = $31,200

The Widget Tool and Die Company buys a $600,000 stamping machine that has an estimated residual value of $120,000. The company expects the machine to produce eight million units. It makes 520,000 units during the current period.

 
rev: 03-02-2011

 5.

award:
10 out of
10.00 points

If the units-of-production method is used, the depreciation rate is:

 
rev: 03-02-2011

	$0.92 per unit.
	$0.23 per unit.
	$0.06 per unit.
	$1.15 per unit.

Depreciation rate per unit = (Cost − Residual Value) × (1 ÷ Estimated Total Production)

$0.06 = $600,000 − $120,000 × 1 ÷ 8,000,000

 6.

award:
10 out of
10.00 points

If the units-of-production method is used, the depreciation expense for this period is:

 
rev: 03-02-2011

	$520,000.
	$39,000.
	$400,000.
	$31,200.

$0.06 (deprecation rate) × 520,000 (units current period) = $31,200