Question: On April 1 7 , 2 0 2 1 , the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus

On April

17, 2021,

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

2, 910, 000 .

The company expects to extract

970, 000

tons of coal during a four

-

year period. During

2021, 350, 000

tons were extracted and sold immediately.

Required:

1 .

Calculate depletion for

2021 .

2 .

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

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