Weaver Copurchased $40, 000 of Equipment with a Salvage Value of of $5

question 92

Multiple Choice

Weaver Co.purchased $40, 000 of equipment with a salvage value of $5, 000 and a useful life of nine years on August 15, 2010.If the company used sum-of-the-years'-digits depreciation computed to the nearest whole year, depreciation expense for 2011 was

• A)$6, 222
• B)$7, 000
• C)$7, 111
• D)$8, 000

---

Definitions:

Direct Materials

Raw materials directly used in the manufacturing of a product, easily traceable to the finished product.

Purchasing Department

A division within a business that is responsible for acquiring goods, services, and materials necessary for the company's operations.

Fixed Factory Overhead Volume Variances

The difference between the budgeted and the actual volume of production, affecting the fixed factory overhead costs.

Inventory Levels

The quantity of goods that a company has in stock at any given time, important for meeting demand without overstocking.