Depletion Charge per Unit Solution

STEP 0: Pre-Calculation Summary
Formula Used
Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion
DC = (OC-RV)/n
This formula uses 4 Variables
Variables Used
Depletion Charge per Unit - The depletion charge per unit is calculated by taking the total cost less salvage value and dividing it by the total number of estimated units.
Original Cost - Original Cost is the total cost associated with the purchase of an asset.
Residual Value - Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value.
Total Number of Units Depletion - Total Number of Units Depletion is the total number of units available for depletion.
STEP 1: Convert Input(s) to Base Unit
Original Cost: 3500 --> No Conversion Required
Residual Value: 1.4 --> No Conversion Required
Total Number of Units Depletion: 12 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
DC = (OC-RV)/n --> (3500-1.4)/12
Evaluating ... ...
DC = 291.55
STEP 3: Convert Result to Output's Unit
291.55 --> No Conversion Required
FINAL ANSWER
291.55 <-- Depletion Charge per Unit
(Calculation completed in 00.005 seconds)

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DuPont Analysis
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Go Net Present Value = sum(x,0,Number of Periods,((Cashflow at End Period/(1+Internal Rate of Return)^x)))-Initial Investment
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Go Net Operating Cycle = ((365/Purchases)*Average Inventory)+((365/Net Receivables)*Average Accounts Receivables)
Discount Lost
Go Discount Lost = (Discount Percentage/(100-Discount Percentage))*(365/(Final Payment Date-Last Discount Date))
Annual Equivalent Cost
Go Annual Equivalent Cost = (Asset Price*Discount Rate)/(1-(1+Discount Rate)^-Number of Periods)
Net Present Value
Go Net Present Value = sum(x,1,Time Period,(Cash Flow/(1+Internal Rate of Return)^x))
Annual Percentage Yield
Go Annual Percentage Yield = (1+(Stated annual interest rate/Compounding Periods))^Compounding Periods-1
Effective Yield
Go Effective Yield = 1+(Nominal Rate/Number of Payments Per Year)^(Number of Payments Per Year)-1
Depletion Charge per Unit
Go Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion
Value of Stock
Go Value of Stock = Expected Dividend Per Share/(Cost of Capital Equity-Dividend Growth Rate)
EBITDA
Go EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization
Shareholders' Equity given Share Capital, Retained Earnings and Treasury Shares
Go Total Shareholders' Equity = Share Capital+Retained Earnings-Treasury Shares
Operating Cash Flow
Go Operating Cash Flow = Earnings Before Interest and Taxes+Depreciation-Taxes
Discount Percentage
Go Discount Percentage = ((List Price-Price Paid)/Price Paid)*100
Residual Value
Go Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan
Long term Debt to Equity ratio
Go Long Term Debt to Equity Ratio = Long Term Debt/Shareholders Fund
EBIT
Go Earnings Before Interest and Taxes = Revenue-Operating Expense
Depletion Expense
Go Depletion Expense = Depletion Charge per Unit*Units Consumed
Shareholders' Equity given Total Assets and Liabilities
Go Total Shareholders' Equity = Total Assets-Total Liabilities
Discount Factor
Go Discount Factor = 1/(1*(1+Discount Rate)^Number of Periods)
Discount given Discount Rate and List Price
Go Discount = Discount Rate*List Price
Discount given List Price and Price Paid
Go Discount = List Price-Price Paid
List Price
Go List Price = Price Paid+Discount

Depletion Charge per Unit Formula

Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion
DC = (OC-RV)/n

How to Calculate Depletion Charge per Unit?

Depletion Charge per Unit calculator uses Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion to calculate the Depletion Charge per Unit, The depletion charge per unit is calculated by taking the total cost less salvage value and dividing it by the total number of estimated units. Depletion Charge per Unit is denoted by DC symbol.

How to calculate Depletion Charge per Unit using this online calculator? To use this online calculator for Depletion Charge per Unit, enter Original Cost (OC), Residual Value (RV) & Total Number of Units Depletion (n) and hit the calculate button. Here is how the Depletion Charge per Unit calculation can be explained with given input values -> 290.8333 = (3500-1.4)/12.

FAQ

What is Depletion Charge per Unit?
The depletion charge per unit is calculated by taking the total cost less salvage value and dividing it by the total number of estimated units and is represented as DC = (OC-RV)/n or Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion. Original Cost is the total cost associated with the purchase of an asset, Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value & Total Number of Units Depletion is the total number of units available for depletion.
How to calculate Depletion Charge per Unit?
The depletion charge per unit is calculated by taking the total cost less salvage value and dividing it by the total number of estimated units is calculated using Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion. To calculate Depletion Charge per Unit, you need Original Cost (OC), Residual Value (RV) & Total Number of Units Depletion (n). With our tool, you need to enter the respective value for Original Cost, Residual Value & Total Number of Units Depletion and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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