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Instructions on How to Create a Units of production Depreciation Schedule

# Instructions on How to Create a Units of production Depreciation Schedule

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Units of production Depreciation Schedule
Units of production Depreciation Schedule

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01/03/2012

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How to create a Units-of-Production Depreciation Schedule
MJC Revised 12/2011 Page 1
Love Thy Pets Inc.,Depreciation Schedule
–
Units of ProductionTitle of Asset: Vehicle1 Cost of Asset \$20,0002 Residual Value \$5,0003 Projected units per useful life 100,000 MilesA B C D E F GEndof yearCost of AssetActualMileage peryearCost perunitAnnualDepreciationExpense foreach yearAccumulateddepreciationat end of yearBook Value4 1 \$20,000 20,000 \$0.15 \$3,000 \$3,000 \$17,0005 2 \$20,000 30,000 \$0.15 \$4,500 \$7,500 \$12,5006 3 \$20,000 30,000 \$0.15 \$4,500 \$12,000 \$8,0007 4 \$20,000 10,000 \$0.15 \$1,500 \$13,500 \$6,5008 5 \$20,000 15,000 \$0.15 \$1,500 \$15,000 \$5,0001.

corporation’s
name, the title for the method of Depreciation, andthe title of the asset.2.

Next use the formula to calculate the cost per unit.Cost of Asset
–
Residual ValueProjected units per useful life20,000
–
5,000100,000=\$0.15 per mile of usage3.

On line one write, the title
“Cost of Asset” and in the next box over
write the dollar valueof the asset.4.

On line two write, the title
“Residual Value” and
in the next box over write the dollarvalue of the asset at the end of its useful life to the corporation.5.

On line three write, the title
“Projected units per useful life” and
in the next box overwrite the estimated number of units that the asset will produce over its useful life to thecorporation.