Unit of production table
UOP is based on the number of units that an asset has produced in a given period. For example, you can base the annual depreciation calculation on how many copies are created by a copier in a year.
To calculate annual depreciation, the number of units that are produced for the year is divided by the total number of units that the asset is estimated to produce in its lifetime. This number is multiplied by the asset cost to determine the amount of annual depreciation.
(Actual units for the year / Total estimated units for the asset's life) * Basis = Annual depreciation
For example, if a copier has produced 20,000 copies in 2017, is estimated to produce 100,000 copies in its lifetime, and costs $50,000 to buy, then the annual depreciation for 2017 is $10,000.
(20,000 / 100,000) * 50,000 = $10,000