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Sagot :
Calculating the depreciation per unit is the first step in applying the units-of-production technique.
Depreciation per unit is calculated by dividing the cost-residual value by the estimated life in units.
The formula for depreciation per unit is (1,040,000 - 100,000)/600,000.
Each unit of depreciation costs 1.56 cents.
The second step is to determine the depreciation for the period.
Depreciation for a certain time period is calculated by multiplying the actual units produced during that time by the depreciation per unit.
Depreciation for the time period is equal to 1.56 * 600,000.
Depreciation for this time frame is 936,000.
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