UNITS OF PRODUCTION Method of Depreciation

💥Depreciation Cheat Sheet → accountingstuff.co/shop
In this video you'll learn how to use the Units of Production Depreciation Method in Accounting. This a variable cost depreciation technique. Others depreciation methods include...
▪ Straight Line Depreciation Method → • STRAIGHT LINE Method o...
▪ Double-Declining Balance Method → • DOUBLE DECLINING BALAN...
▪ Sum of the Year's Digits Method → • SUM OF THE YEAR'S DIGI...
▪ Units of Production Method → • UNITS OF PRODUCTION Me...
You'll find out what depreciation means and how it applies to Non-Current Assets like a Sawmill Machine. Then we'll cover a full worked example where you'll learn how to apply the Units of Production Method in three simple steps. This episode of Accounting Stuff is part of a mini-series on Depreciation in Accounting. You can find the link to the whole playlist here ⬇️
🔗Full Depreciation Playlist → • How to Calculate DEPRE...
🔴Subscribe for more Accounting Tutorials → geni.us/subtothechannel
⏱️TIMESTAMPS
00:00 - Intro
00:09 - What is Depreciation?
00:20 - What is the Units of Production Method?
00:32 - Example
01:10 - Step 1: Write Down What You Know
01:35 - Step 2: Build a Depreciation Schedule
02:04 - Step 3: Calculate the Depreciation Expense, Accumulated Depreciation & Book Values
02:36 - How to Calculate Units of Production Depreciation Expense
06:04 - Units of Production Depreciation Graph
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#accounting #accountingbasics #accountingstuff

[@Jrhee12]

I just watced How this guy makes accountancy looking interesting. magical.

[@AccountingStuff]

Thanks Jinsan, I'm glad you enjoyed it!

[@danielgibson3820]

The production value of your videos is absolutely insane, and the personal touch you add to your videos is really starting to blossom. Very good job, look forward to watching when a topic I get stuck on pops up one day

[@AccountingStuff]

Cheers Daniel and thanks for your feedback!

[@nyiirograce]

I studied accounting but your videos are far better than what the lectures we got from university. Please I request you to take us through the entry rules for liabilities and revenue and bank accounts. They always give me hard time. Thank you

[@AccountingStuff]

Hey Nyiiro, thanks for your suggestions!

[@nyiirograce]

@@AccountingStuff okay sir. Waiting for your response to my suggestion. Thanks

[@lianko8374]

Dude, ur such a great guy who gives all the extra definitions for our home works... Keep up the insparational work

[@AccountingStuff]

Cheers Aishath! All the best with your studies

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Hi James, you create great videos and break down accountancy brilliantly. You’ve inspired us to create an account too, so we can help startups and small businesses get to grips with accountancy 101. Great work 🙌🏽

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You really explain clearly and simply accounting, which is rly hard, so just wanted to say thank you so much for helping me with so many homework

[@andrewbodensiek5235]

James can't thank you enough for these helpful videos as I pursue my bachelor's in finance. You make things fun and easy to understand. I wish I could give you a giant hi-five. Or a hug.

[@hastism5059]

Finally finished watching all your videos James (and that doesn't mean that I'm not gonna wait for your new videos every week!). You are phenomenal James. Just keep up with this amazing work and never stop. Lots of love from Iran..

[@AccountingStuff]

Thanks buddy! I appreciate your support. All the best :)

[@ciaraleyva1750]

As an accounting student, your videos have helped me SO MUCH. Thank you for making such informative, interesting, and easy to understand videos. You are my new favorite youtuber....bravo.

[@AccountingStuff]

Cheers Ciara, happy to help :)

[@christinaahn1887]

Watched the whole playlist! Thank you for putting together this amazing playlist!

[@AccountingStuff]

Congrats on getting through all of it!

[@christinaahn1887]

Thank youuuu

[@hafsakhan8860]

I just completed watching your depreciation playlist and it has cleared all my doubts. Your videos are so interesting to watch and honestly, an hour flew by. Thank you so much. Keep doing the good work.

[@AccountingStuff]

Thanks for your kind words! Great to hear you found these useful

[@hayuek5392]

I’m glad that you keep on uploading your video sir. Please keep it up and I will always support you

[@AccountingStuff]

Thanks, I appreciate your support!

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I have just completed all your 41 videos. Very informative and concise. Wishing you more success in your channel Thank you for your help!

[@AccountingStuff]

Thanks Marites! Well done on getting through them all :)

[@humayunkabir5837]

Your videos are so easy to understand. You make complex look easy. Sometimes your videos help me to prepare for my CFA L1 exams to understand the small but important basic concept.

[@AccountingStuff]

Best of luck in your exams!

[@theMOCmaster]

You're very devoted keep it up helped me get thru accounting 101

[@AccountingStuff]

Thanks, will do!

[@sheisblack567]

Thank you for giving full information about depreciation easlly

[@WijthaGayan]

im proud for you because I'm came with this playlist have no idea but after all playlist watch until end time i have got knowledge for accounting .

[@AccountingStuff]

Nice one, great to hear it's making sense!

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James, amazing teaching skills you have..Keep going

[@AccountingStuff]

Cheers Harvey, will do!

[@Butterfly24215]

You makes accounting so interesting!! And the amount of efforts you put in your videos!!🔥🔥

[@AccountingStuff]

Thanks! Glad to hear you're enjoying it :)

[@spybabi]

Enjoying binge watching your videos on your accounting basics playlist :D

[@AccountingStuff]

Enjoy! Hope you don't get sick of me :)

[@AccountingStuff]

What other videos would you like to see? TIMESTAMPS 00:00 - Intro 00:09 - What is Depreciation? 00:20 - What is the Units of Production Method? 00:32 - Example 01:10 - Step 1: Write Down What You Know 01:35 - Step 2: Build a Depreciation Schedule 02:04 - Step 3: Calculate the Depreciation Expense, Accumulated Depreciation & Book Values 02:36 - How to Calculate Units of Production Depreciation Expense 06:04 - Units of Production Depreciation Graph

[@r.a.p.h4481]

Cooking the Books. How to spot it. With real world examples :)

[@AccountingStuff]

That would be fun!

[@dinkfam0682]

Dollar value LIFO!

[@johnrafaellubarbio4338]

interest..... I'm Grade 12 and I'm on modular, you're my only hope to learn about interest

[@ProfitHustlePlaybook]

Good work boy..

[@treniachildress8336]

I just love this guy.

[@Zhake_the_Mighty_Dragon]

Very very helpful James!

[@AccountingStuff]

Glad to hear it!

[@TheMandolinn222]

You are the BEST.

[@bhav]

Hey James! I stumbled into your videos a long time back, looks like you're doing great! 👏👏 Hope you're well

[@AccountingStuff]

Long time no see!

[@FMUSIC-ORG]

Hey G So i have learned a little about accounting before and now i watch your videos everyday, now i want you to tell me how to implement these things and to understand them? Thanks

[@muhammadtalhakhan7477]

This guy teaching accounting in much better way than our todays teachers❤️❤️

[@juliuspalmero4140]

Hi James! Thank you for all the knowledge that you impart in the accounting field. It really means a lot. Question, are you a CPA? I'm still considering it but seeing you, I'm torn. Thanks again! 😊

[@AccountingStuff]

Cheers Julius, you're welcome! I'm an ACA which I believe is similar to the CPA.

[@shanebauer6425]

Hey James! Your videos are great, thanks so much for all the hard work you put into them. Seems you also have a passion for photography. What editing software do you use? Do you have affiliate links for your film gear?

[@AccountingStuff]

Cheers Shane, I'm glad you're enjoying them! I do enjoy photography and the process of making videos. I use FCPX to edit. Used to have some affiliate links for film gear, but I removed them because it's not really what this channel is about.

[@ruelamaeamando4969]

Hello Teacher James!! I just discover your playlist of basic accounting that recommended by my friend. I was amazed at the whole playlist, honestly it helps me a lot on my struggle on understanding accounting. And i wonder if you would also make videos about 10 cycles of accounting! 😊❤️ - Your Viewer😊 Ps. I actually made an notes of all your videos (whole playlist of basic accounting) 😁

[@AccountingStuff]

Hey Ruela, this is great timing! I'm releasing a video covering the Accounting Cycle on Monday

[@adonisnarch]

Thank you so much. You helped me understand something i never imagined i could. Would it be possible to cover basic and diluted EPS, and the types of shares?

[@AccountingStuff]

Thanks for your requests!

[@wc0929]

Hi James, I love your channel!! Will you have a series talking about calculating income taxes and long-term liabilities?

[@AccountingStuff]

Hey Winnie, thanks for your suggestions!

[@yohannesshowantasew4699]

YOU ARE SO BEAST . THANK YOU AND KEEP GOING

[@AccountingStuff]

Cheers Yohannes, will do!

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Thanks James

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great video!

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Your video will help me to pass my Cambridege OLevel 2021 please support the 2021 batch

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You fix my life my man, thanks a lot, i would like to support you buying the cheat sheets, but I'm poor, after i graduate from university I will invite you a coffee

[@bkalkan7493]

Hi ! thanks for your effort to explain all of this messy topics with very short and clear way ! could you please make a video for "provisions" items ? I have a problem with this account and its nature. For example "country provisions" :) thanks !

[@AccountingStuff]

Thanks for your suggestion!

[@AliSaktaganov]

You have a great channel, thank you for all you are doing, it super helpful. May I kindly ask you to explain, Accounts Receivable and bad debts. Many thanks in advance :)

[@AccountingStuff]

Thanks for your suggestions!

[@umxltiii9796]

i legit cant learn accounting from anywhere else its already so boring, you make it interesting.

[@lemmen7420]

Hey James nice video ! what is the most used DEP METHOD ?

[@aarontaylor6464]

What depreciation method would you recommend for estimating new and or used automobile buying?

[@abdulnafay5397]

excellent job

[@AccountingStuff]

Thanks Abdul!

[@rynokotze125]

I just want to ask a question. Can you deduct expenses incurred from a loan instead of earnings? And if so, how would the journal be written?/Balance sheet be adjusted?

[@Surre4LSoto]

Have a test in a couple hours lol, thank you so much

[@AccountingStuff]

Good luck!!!

[@nepboy555]

Your videos are visually pleasing. Do you edit them yourself, what software do you use?

[@AccountingStuff]

Thank you! Yes it's just me at the moment. I edit in Final Cut Pro X

[@nepboy555]

Thank you for your reply, I am an accountant myself here in the UK and have been thinking of making some videos on KZbin. Wondering if you could help in any way. Rest assured, I won't be direct competitor. 😆😆

[@franciareyes830]

Thankyou ❤

[@AccountingStuff]

Cheers Francia :)

[@stacey4078]

How about a video on Financial Ratios? Working capital....acid test...turnover rates, etc. Thanks!!

[@AccountingStuff]

Hey Stacey, I plan to make a whole playlist on Financial Ratios very soon

[@thomasnithin21]

Hey James, could you do a video that explains deferred tax liability and deferred tax assets? How they impact the balance sheet and cash flow statement. Also how the timing differences affect accounting. I am having trouble with this. Thank You Legend!

[@AccountingStuff]

Thanks for your suggestions! I have had quite a few requests for these topics and will look into doing them

[@thomasnithin21]

@@AccountingStuff You Legend!

[@loganohalloran975]

Hey, this is a really good video, in the depreciation schedule for the Sawmill Machine how did you calculate the 18,000 units produced, is this just the units produced by the business (it wasn't calculated in any way)?

[@AccountingStuff]

Cheers Logan, yes that's just a made up number for the example.

[@hayaabaloch4619]

thank you so much ❤

[@diegosegura8715]

Hey man this is awesome. It's probably out there somewhere, but if you so happened to make an excel spreadsheet where you could easily calculate/populate a depreciation schedule based on some macros, perhaps I just might buy it. Hint Hint.

[@AccountingStuff]

Hey Diego, I haven't created one of those but thanks for suggesting it to me!

[@surafellulu6272]

Hey man I was wondering if I can do this with kilometers instead of units

[@jakecarag575]

Can u do a series on the accounting cycle or just a recap thanks hahahaha or have u already done that in your videos thanks for this videos james this helps a lot

[@AccountingStuff]

Hey Jake! I'd like to cover the Accounting Cycle sometime soon

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james i fucking love you youre a life saver

[@FMUSIC-ORG]

Hey G, how to implement these in daily life?

[@khawaga0]

Miss you my professor. Nice video 👌 But can you recommend to me channels learn IFRS in KZbin?!!

[@AccountingStuff]

Cheers Mo! I'm not aware of any that specifically focus on IFRS but I'll look into it. All the best!

[@khawaga0]

@@AccountingStuff Thanks my professor ❤️

[@blast2686]

Can you make a video on *Consignment*

[@AccountingStuff]

Thanks for your suggestion :)

[@blast2686]

On 30th November 2011, they dismantled the machine at a cost of Rs 5,000 and then sold for Rs 100,000. Are we supposed to add dismantling costs to the cost of the asset?

[@salmanalherais7901]

Can you please make a video about accounting leases before Monday

[@AccountingStuff]

Hey Salman, thanks for your suggestion!

[@prizy6416]

Please explain about IAS37 & 8

[@AccountingStuff]

Thanks for your suggestion!

[@skyr6362]

Sorry sir i have question at no of units produce 18000 .how we can get the value?

[@304bvamsi3]

Bro would u plese make a video on independent brach account s

[@AccountingStuff]

Thanks for your suggestion!

[@kanishksharma6954]

How we can estimate the no. Of useful units produced

[@ANILKUMAR-oq2fr]

Hi James, I didn't understand how you have arrived at the No. of Units produced each year? Please help me to understand.. Thank You

[@AccountingStuff]

Hey Anil, I made that number up for this example

[@forrestspellman]

I just had flashbacks to FAR thank you sir lol

[@loongyukhou6304]

I got *BIG C O N F U S E* in oar(overhead absorption rate) and overhead things, can you make a video for these, I noticed that my peers too had a hard time for this management stuff, we will be very appreciated for that.

[@AccountingStuff]

Thanks for your suggestion!

[@fardeenshamsab4254]

Can you explain incomplete records , please, I have difficulties in it.

[@AccountingStuff]

Thanks for your suggestion!

[@ral7797]

How can we find the units of activity?

[@heidicindy2535]

How do we find the No. Of unit produced I've watched your video like 5x and I'm failing to understand how you got 1800 in that column at the beginning

[@AccountingStuff]

Hey Heidi, that's just a random number for the example. In reality, in reality you would need to check with your production team.

[@etienneotoole4742]

awfully good (accounting is accrual mistress)

[@AccountingStuff]

Haha, that's a new one!

[@nouranalantably6242]

how to calculate residual value?

[@ProfitHustlePlaybook]

How you found no. of units production? Confusing

[@kevinqinlann2754]

why is depreciation per unit a fixed rate and not variable based on the remaining value at the end of the year?

[@kevinqinlann2754]

really appreciation your videos you a lot better than the etutors in my university

[@r.a.p.h4481]

Can you add Paypal to the payment options for your Cheat Sheets?

[@r.a.p.h4481]

And nice editing by the way 👌

[@AccountingStuff]

I'll look into it! Thanks

[@AccountingStuff]

I've now added Paypal, thanks for pointing this out!

[@r.a.p.h4481]

@@AccountingStuff You Sir, can book another sale ;)

[@blast2686]

What's with the delay James?

[@AccountingStuff]

I'm working on the next video as we speak. It should be out next week

[@johnrafaellubarbio4338]

I'm Grade 12, can you please do interest for notes payable

[@AccountingStuff]

Hey John, cheers for your suggestion!

[@johnrafaellubarbio4338]

@@AccountingStuff thank you so much....because it's so hard to study by reading only

[@AccountingStuff]

@@johnrafaellubarbio4338 No worries, I totally get it :)

[@ultralegendarybeast101]

Imagine if he does Accounting for his Cheat Sheet Store

[@KrishnaHari-jw3ip]

🇮🇳👍

[@fathiatubosun9200]

Why is the accumulated depreciation keep increasing?

[@AccountingStuff]

Hey Fathia, Accumulated Depreciation measures the all depreciation incurred up to a point in time. It's a cumulative total, so it increases over time.

[@fathiatubosun9200]

@@AccountingStuff thanks

[@beyazbulut961]

DO YOU LOVE ACCOUNTING? - NO, I HATE IT. SO WHY ARE U HERE, DO U LOVE JAMES? - YES I M!!