A Truck Costing $45,000 and on Which $39,000 of Accumulated

question 257

Multiple Choice

A truck costing $45,000 and on which $39,000 of accumulated depreciation has been re-corded was discarded as having no value. The entry to record this event would include a

• A) gain of $6,000.
• B) loss of $6,000.
• C) credit to Accumulated Depreciation for $39,000.
• D) credit to Accumulated Depreciation for $45,000.

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Definitions:

Weighted-Average Method

This inventory costing method assigns the average cost of goods available for sale during the period to both ending inventory and cost of goods sold.

Equivalent Unit

A calculation used in cost accounting that converts partially completed goods into a number of complete units of output, helping in the costing process of production.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available during the period.

Units Transferred

The quantity of goods moved from one process, department, or location to another within a company's operations.