On June 30, 2021, Prego Equipment purchased a precision laser-guided steel punch that has an expected capacity of 313,000 units and no residual value. The costof the machine was $469,500 and is to be depreciated using the units-of-production method. During the six months of 2021, 37,000 units of product wereproduced. At the beginning of 2022, engineers estimated that the machine can realistically be used to produce only another 258,750 units. During 2022, 83,000units were produced.Prego would report depreciation in 2022 of:Multiple Choice$110,067$132,800.$166,500.$124,500.McGravHill

Introduction:-. Depreciation is an expense. Which is charged on fixed asset over estimate useful…

Answered: units were produced. Prego would report…

units were produced. Prego would report depreciation in 2022 of: Multiple Choice $110,067. $132,800. $166,500. $124,500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

On June 30, 2021, Prego Equipment purchased a precision laser-guided steel punch that has an expected capacity of 313,000 units and no residual value. The cost
of the machine was $469,500 and is to be depreciated using the units-of-production method. During the six months of 2021, 37,000 units of product were
produced. At the beginning of 2022, engineers estimated that the machine can realistically be used to produce only another 258,750 units. During 2022, 83,000
units were produced.
Prego would report depreciation in 2022 of:
Multiple Choice
$110,067
$132,800.
$166,500.
$124,500.
Mc
Grav
Hill

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