Units of production depreciation — AccountingTools
Jan 19, 2019· Units of Production Depreciation Example. Pensive Corporation's gravel pit operation, Pensive Dirt, builds a conveyor system to extract gravel from a gravel pit at a cost of 400,000. Pensive expects to use the conveyor to extract 1,000,000 tons of gravel, which results in a depreciation rate of per ton (1,000,000 tons / 400,000 cost).