Depreciation as per uop method

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Under cos act, depreciation for second shift is 1.5X. Is this applicable for unit of  production method also? i guess not because under uop, we would take  the production of second shift in to account.

thanks a lot.

Replies (4)

It’s usually period for which depreciation is charged. if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of the triple shift the depreciation shall be calculated on the basis of 100% for that period. No CCP mentioned for UOP, which means other material is not sufficient or it is double depreciation under UOP. https://www.cas.ind.in/wp-content/uploads/11Guidance-Note-on-Accounting-for-Depreciation-in-companies-in-the-context-of-Schedule-II-to-the-Companies-Act-2013.pdf

On the other hand, double depreciation is correct for UOP. 

so if a  machine works for 300 days in double shift, the number of hours will be 300x8hoursx2.

for three shifts, it will be 300x8x3.

please correct me if I am wrong.

also what is ccp?

 

thanks

Instead, if your depreciation is 100₹, then actual depreciation for double shift= 150

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