Bay of Fundy Company Uses the Units-Of-Production Method in Calculating

question 83

Multiple Choice

Bay of Fundy Company uses the units-of-production method in calculating depreciation. A new piece of equipment is purchased for $18,000 that will produce an estimated 100,000 units over its useful life. Estimated residual value at the end of its useful life is $2,000. What is the depreciable cost per unit?

• A) $1.60
• B) $1.80
• C) $0.16
• D) $0.18

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Definitions:

Filters Blood

A vital function of the kidneys that involves removing waste products and excess substances from the blood, maintaining proper chemical balance.

Reticular Connective Tissue

A type of connective tissue that contains a network of reticular fibers, supporting the soft tissue of organs and forming the structural framework of the lymphatic system and bone marrow.

Dense Regular Connective Tissue

A type of connective tissue with collagen fibers aligned in parallel, providing strength and resistance in one direction, commonly found in tendons and ligaments.