E9-7 (Algo) Computing and Recording Units-of-Production Depreciation [LO 9-3]

Raine Industries bought a machine at the beginning of the year at a cost of $24,000. The estimated useful life was five years and the residual value was $2,000. Assume the estimated productive life of the machine is 11,000 units. Expected annual production was year 1, 2,200 units; year 2, 3,200 units; year 3, 2,200 units; year 4, 2,200 units; and year 5, 1,200 units.

Required:

1. Complete a depreciation schedule for the units-of-production method.
2. Prepare the journal entry to record Year 2 depreciation.