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Here in this case we also work as follow
Year 1
sale 600 (60@ $10)
COS 300 (Incl Depn)
A/cIncome 300
+Depn 60 (Coz here cost of sale is
only for 60 unit i.e. Depn
$1 per unit)
-cca 50 IF ANY
Taxable 310
Income

Year 2
sale 400 (40@ $10)
COS 200 (Incl Depn)
A/cIncome 200
+Depn 40 (Coz here cost of sale is
only for 40 unit i.e. Depn
$1 per unit)
Taxable 240
Income

Total
Taxable 550 (Year 1 & 2)
Income

in the give example tax effect given only for $60 insted of $100