Unit of Production (UOP) table

A Unit of Production (UOP) table provides an optional method of calculating depreciation based on the number of units an asset produces in a given period or year. For example, you could base the annual depreciation calculation on how many copies a copier makes in a year.

Calculating Annual Depreciation

To calculate annual depreciation, a UOP table takes the number of units produced for the year, divides it by the total number of units the asset is estimated to produce in its lifetime, and multiplies that 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

Note: During the last year of the asset's life, you might need to adjust the total estimated units to match the actual units produced.

For example, if a copier made 20,000 copies in 1999, was estimated to make 100,000 copies in its lifetime, and cost $50,000, the annual depreciation for 1999 would be $10,000.

(20,000 / 100,000) * 50,000 = $10,000