## Answers

**Solution:**

Depreciation amount per unit = (Cost - Residual value) / useful life in units = ($60,000 - $4,000) / 130000 = $0.43 per unit

Unit of Production method | ||||||

Year | Asset Cost | Depreciation per unit | Nos of units produced | Depreciation Expense for the year | Accumulated Depreciation | Ending Book Value |

Purchase Date | $60,000.00 | |||||

1 | $0.43 | 12000 | $5,160.00 | $5,160.00 | $54,840.00 | |

2 | $0.43 | 16000 | $6,880.00 | $12,040.00 | $47,960.00 | |

3 | $0.43 | 11000 | $4,730.00 | $16,770.00 | $43,230.00 | |

Total | $16,770.00 |

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