Depletion Cost Per Unit Calculator

Calculate Depletion Cost Per Unit





Formula

The formula to calculate the Depletion Cost Per Unit (DCPU) is:

\[ DCPU = \frac{TC - RV}{TU} \]

Where:

Definitions

Example

Let's say the total cost of the resource is $1,000,000, the residual value is $100,000, and the total number of units is 500,000. Using the formula:

\[ DCPU = \frac{1,000,000 - 100,000}{500,000} \]

We get:

\[ DCPU = 1.80 \text{ dollars per unit} \]

So, the depletion cost per unit is $1.80 per unit.

Extended information about "Depletion-Cost-Per-Unit-Calculator"

Depletion per Unit Formula

Formula: \( \text{Depletion per Unit} = \frac{\text{Cost} - \text{Residual Value}}{\text{Total Estimated Units}} \)

Example: \( \text{Depletion per Unit} = \frac{100000 - 10000}{50000} \)

How to Calculate Depletion Expense

Formula: \( \text{Depletion Expense} = \text{Depletion per Unit} \times \text{Units Extracted} \)

Example: \( \text{Depletion Expense} = 1.8 \times 1000 \)

How to Calculate Depletion Rate

Formula: \( \text{Depletion Rate} = \frac{\text{Depletion Expense}}{\text{Total Estimated Units}} \)

Example: \( \text{Depletion Rate} = \frac{1800}{50000} \)

Cost Depletion vs Percentage Depletion

Definition: Cost depletion and percentage depletion are two methods of calculating depletion expense. Cost depletion is based on the actual cost of the resource, while percentage depletion is based on a fixed percentage of gross income from the resource.

How to Calculate Percentage Depletion

Formula: \( \text{Percentage Depletion} = \text{Gross Income} \times \text{Depletion Rate} \)

Example: \( \text{Percentage Depletion} = 50000 \times 0.15 \)