Using the Sum-Of-The-Years'-Digits Method, Depreciation for 2010 and Book Value

question 56

Multiple Choice

Using the sum-of-the-years'-digits method, depreciation for 2010 and book value at December 31, 2010 would be:

• A)$19,200 and $22,800.
• B)$17,600 and $26,400.
• C)$19,200 and $28,800.
• D)$17,600 and $32,400.Depreciation, 2010 = ($72,000 6,000) 4/15 = $17,600 Book value, 12/31/10 = $72,000 22,000 17,600 = $32,400

Be able to calculate equivalent units of production for materials and conversion costs using the weighted-average method.

Understand how to apply the first-in, first-out (FIFO) method in process costing, including calculating equivalent units of production.

Understand and apply concepts related to materials and conversion costs in process costing.

Be able to compute the cost per equivalent unit of production for both materials and conversion costs.

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Definitions:

Basalt

A dark, fine-grained volcanic rock that is formed from the rapid cooling of basaltic lava exposed at or very near the surface.

Tan Silt

Fine-grained sedimentary material with a distinctive tan color, composed of quartz and feldspar, often transported by water or wind.

Sediment

Particles of organic or inorganic matter that accumulate in a loose, unconsolidated form, often transported by water, wind, or ice.

Angular Fragments

Pieces of rock or mineral that have sharp edges, typically resulting from mechanical weathering and indicative of rapid transport or deposition.