$olution:

On October $1,2024,$ the Allegheny Corporation purchased equipment for $$203,000.$

The estimated service life of the equipment is $10$ years and the estimated residual value is $$5,000.$

Explanation:

The equipment is expected to produce $300,000$ units during its life.

Step $2$

Units$$of$$production$($units$$produced$$in$2024,$

Select formula for Units of Production Depreciation:

Depreciation cost per unit $*$ units produced

Calculate $2021$ depreciation expense:

Depreciation per unit rate $($a$)$

$$0\mathrm{.}66$

Units produced in $2021($b$)$

$18,000$

Depreciation in $2021($a$*$b$)$

$$11,880$

Calculate $2022$ depreciation expense:

Depreciation per unit rate $($a$)$

$$0\mathrm{.}66$

Units produced in $2021($b$)$

$33,000$

Depreciation in $2021($a$*$b$)$

$$21,780$

Depreciation cost per unit $=$ $$203,000-$ $$5,000=$ $$198,000/300,000$ units $=$ $$0\mathrm{.}66$ per unit.

Explanation:

Depreciation cost per unit is $$0\mathrm{.}66$perunit.

Answer

Final$$Solution:

Select formula for Units of Production Depreciation:

Depreciation cost per unit $*$ units produced

Calculate $2021$ depreciation expense:

Depreciation per unit rate $($a$)$

$$0\mathrm{.}66$

Units produced in $2021($b$)$

$18,000$

Depreciation in $2021($a$*$b$)$

$$11,880$

Calculate $2022$ depreciation expense:

Depreciation per unit rate $($a$)$

$$0\mathrm{.}66$

Units produced in $2021($b$)$

$33,000$

Depreciation in $2021($a$*$b$)$

$$21,780$

Depreciation cost per unit $=$ $$203,000-$ $$5,000=$ $$198,000/300,000$ units $=$ $$0\mathrm{.}66$ per unit.