Units of Production Depreciation The units of production method assigns an equal expense rate to each unit produced.

A. There are many ways to calculate depreciation in Excel, and several of the depreciation methods already have a built-in function included in the software. The table below includes all the built-in ...

How to calculate depreciation for fixed assets with the straight-line method, the sum of the years’ digits method, and others, using Microsoft Excel ...

How much value an asset loses year-over-year depends on which depreciation method your business uses: straight-line, units of production, double declining balance or sum of the years' digits.

The main advantage of the units of production depreciation method is that it gives you a highly accurate picture of your depreciation cost based on actual numbers, depending on your tracking method.

With the units-of-production depreciation method, the amount of depreciation recorded each period depends on how much the business used the asset.

If you produced 2,000 units in one year, then the depreciation expense for that year, using the units of production method, would be $20,000 and the book value of the asset is reduced to $80,000.