A Machine That Cost $13,000 and on Which $9,300 of Accumulated

question 169

Multiple Choice

A machine that cost $13,000 and on which $9,300 of accumulated depreciation had been recorded was disposed of for $3,700.The entry to record the disposal of the machine is:

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Definitions:

Work in Process

Inventory items that are in the production process but are not yet completed goods.

Predetermined Overhead Rate

A rate calculated before a period begins by dividing estimated manufacturing overhead costs by an estimated allocation base, used to allocate overhead costs to products.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the manufacturing process or production of goods.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor.