Question: Exercise 1 1 - 1 6 ( Static ) Depletion [ LO 1 1 - 3 ] On April 1 7 , 2 0 2

Exercise

11 - 16 (

Static

)

Depletion

[

11 - 3]

On April

17, 2024,

the Loadstone Mining Company purchased the rights to a copper mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the copper totaled $

4, 500, 000 .

The company expects to extract

900, 000

tons of copper during a four

-

year period. During

2024, 240, 000

tons were extracted and sold immediately.

Required:

Calculate depletion for

2024 .

Is depletion considered part of the product cost and included in the cost of inventory?

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