UNITS OF PRODUCTION Method of Depreciation

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💥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

Опубликовано:

16 июл 2024

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Комментарии : 149

@Jrhee12 4 года назад

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

@AccountingStuff 4 года назад

Thanks Jinsan, I'm glad you enjoyed it!

@danielgibson3820 4 года назад

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 4 года назад

Cheers Daniel and thanks for your feedback!

@lianko8374 4 года назад

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

@AccountingStuff 4 года назад

Cheers Aishath! All the best with your studies

@nyiirograce 4 года назад

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 4 года назад

Hey Nyiiro, thanks for your suggestions!

@nyiirograce 4 года назад

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

@AccountingStuff 4 года назад

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 4 года назад

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

@AccountingStuff 4 года назад

That would be fun!

@dinkfam0682 4 года назад

Dollar value LIFO!

@johnrafaellubarbio4338 3 года назад

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

@ProfitHustlePlaybook 2 года назад

Good work boy..

@aiaccounts4351 4 года назад

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 🙌🏽

@ciaraleyva1750 3 года назад

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 3 года назад

Cheers Ciara, happy to help :)

@juliettekuehn244 3 года назад

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

@hastism5059 3 года назад

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 3 года назад

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

@andrewbodensiek5235 2 года назад

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.

@humayunkabir5837 3 года назад

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 3 года назад

Best of luck in your exams!

@mariteslumantao4696 3 года назад

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 3 года назад

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

@christinaahn1887 3 года назад

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

@AccountingStuff 3 года назад

Congrats on getting through all of it!

@christinaahn1887 3 года назад

Thank youuuu

@hayuek5392 4 года назад

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

@AccountingStuff 4 года назад

Thanks, I appreciate your support!

@hafsakhan8860 3 месяца назад

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 3 месяца назад

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

@spybabi 4 года назад

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

@AccountingStuff 4 года назад

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

@WijthaGayan 3 года назад

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 3 года назад

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

@Butterfly24215 2 месяца назад

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

@AccountingStuff 2 месяца назад

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

@treniachildress8336 3 года назад

I just love this guy.

@shanebauer6425 4 года назад

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 4 года назад

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.

@bhav 4 года назад

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

@AccountingStuff 4 года назад

Long time no see!

@theMOCmaster 4 года назад

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

@AccountingStuff 4 года назад

Thanks, will do!

@sheisblack567 Год назад

Thank you for giving full information about depreciation easlly

@ruelamaeamando4969 4 года назад

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 4 года назад

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

@juliuspalmero4140 4 года назад

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 4 года назад

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

@harveyjacob66 4 года назад

James, amazing teaching skills you have..Keep going

@AccountingStuff 4 года назад

Cheers Harvey, will do!

@FMUSIC-ORG 6 месяцев назад

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

@TheMandolinn222 3 года назад

You are the BEST.

@adonisnarch 3 года назад

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 3 года назад

Thanks for your requests!

@Zhake_the_Mighty_Dragon 9 месяцев назад

Very very helpful James!

@AccountingStuff 9 месяцев назад

Glad to hear it!

@wc0929 4 года назад

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

@AccountingStuff 4 года назад

Hey Winnie, thanks for your suggestions!

@AliSaktaganov 4 года назад

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 4 года назад

Thanks for your suggestions!

@hisokaamorou4211 Год назад

great video!

@aarontaylor6464 3 года назад

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

@muhammadtalhakhan7477 3 года назад

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

@lemmen7420 3 года назад

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

@chandimamayadunne6812 3 года назад

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

@johnq3543 2 года назад

Thanks James

@bkalkan7493 4 года назад

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 4 года назад

Thanks for your suggestion!

@yohannesshowantasew4699 3 года назад

YOU ARE SO BEAST . THANK YOU AND KEEP GOING

@AccountingStuff 3 года назад

Cheers Yohannes, will do!

@rynokotze125 4 года назад

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?

@nepboy555 4 года назад

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

@AccountingStuff 4 года назад

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

@nepboy555 4 года назад

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

@sebastianbenjumea3891 2 года назад

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

@umxltiii9796 Год назад

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

@loganohalloran975 3 года назад

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 3 года назад

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

@hayaabaloch4619 2 года назад

thank you so much ❤

@thomasnithin21 4 года назад

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 4 года назад

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

@thomasnithin21 4 года назад

@@AccountingStuff You Legend!

@franciareyes830 4 года назад

Thankyou ❤

@AccountingStuff 4 года назад

Cheers Francia :)

@abdulnafay5397 3 года назад

excellent job

@AccountingStuff 3 года назад

Thanks Abdul!

@stacey4078 4 года назад

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

@AccountingStuff 4 года назад

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

@Surre4LSoto 3 года назад

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

@AccountingStuff 3 года назад

Good luck!!!

@diegosegura8715 3 года назад

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 3 года назад

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

@khawaga0 4 года назад

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

@AccountingStuff 4 года назад

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

@khawaga0 4 года назад

@@AccountingStuff Thanks my professor ❤️

@surafellulu6272 3 года назад

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

@blast2686 4 года назад

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?

@blast2686 4 года назад

Can you make a video on *Consignment*

@AccountingStuff 4 года назад

Thanks for your suggestion :)

@jakecarag575 4 года назад

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 4 года назад

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

@FMUSIC-ORG 6 месяцев назад

Hey G, how to implement these in daily life?

@shaadidimitri1460 3 года назад

james i fucking love you youre a life saver

@skyr6362 Год назад

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

@salmanalherais7901 4 года назад

Can you please make a video about accounting leases before Monday

@AccountingStuff 4 года назад

Hey Salman, thanks for your suggestion!

@kanishksharma6954 Год назад

How we can estimate the no. Of useful units produced

@ANILKUMAR-oq2fr 3 года назад

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 3 года назад

Hey Anil, I made that number up for this example

@304bvamsi3 4 года назад

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

@AccountingStuff 4 года назад

Thanks for your suggestion!

@fardeenshamsab4254 4 года назад

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

@AccountingStuff 4 года назад

Thanks for your suggestion!

@prizy6416 4 года назад

Please explain about IAS37 & 8

@AccountingStuff 4 года назад

Thanks for your suggestion!

@ral7797 3 года назад

How can we find the units of activity?

@heidicindy2535 3 года назад

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 3 года назад

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

@loongyukhou6304 4 года назад

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 4 года назад

Thanks for your suggestion!

@ProfitHustlePlaybook 2 года назад

How you found no. of units production? Confusing

@forrestspellman 4 года назад

I just had flashbacks to FAR thank you sir lol

@blast2686 4 года назад

What's with the delay James?

@AccountingStuff 4 года назад

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

@nouranalantably6242 3 года назад

how to calculate residual value?

@kevinqinlann2754 2 года назад

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

@kevinqinlann2754 2 года назад

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

@r.a.p.h4481 4 года назад

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

@r.a.p.h4481 4 года назад

And nice editing by the way 👌

@AccountingStuff 4 года назад

I'll look into it! Thanks

@AccountingStuff 4 года назад

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

@r.a.p.h4481 4 года назад

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

@etienneotoole4742 4 года назад

awfully good (accounting is accrual mistress)

@AccountingStuff 4 года назад

Haha, that's a new one!

@johnrafaellubarbio4338 3 года назад

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

@AccountingStuff 3 года назад

Hey John, cheers for your suggestion!

@johnrafaellubarbio4338 3 года назад

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

@AccountingStuff 3 года назад

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

@ultralegendarybeast101 2 года назад

Imagine if he does Accounting for his Cheat Sheet Store

@fathiatubosun9200 4 года назад

Why is the accumulated depreciation keep increasing?

@AccountingStuff 4 года назад

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 4 года назад

@@AccountingStuff thanks