Dixie Oil Company had the following information and account balances for the years shown relating to Lease No. 1.

REQUIRED: Compute DD&A for the year ended 12/31/06 using:

a. a common unit of measure based on equivalent Mcf

b. gas as the dominant mineral

c. same relative proportion

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Proved property-cost Accumulated DD&A-proved property 12/31/05 $ 40,000 12/31/06 $ 40,000 4,000 Wells and related E&F-IDC.... 400,000 600,000 Accumulated DD&A-wells and RE&F-IDC 60,000 Wells and related E&F-L&WE... 300,000 420,000 Accumulated DD&A-wells and RE&F-L&WE 45,000 2005 2006 Proved reserves, 12/31-Oil 30,000 bbl 50,000 bbl Gas 450,000 Mcf 600,000 Mcf Proved undeveloped reserves, 12/31-Oil 10,000 bbl 12,000 bbl Gas 200,000 Mcf 120,000 Mcf Production during 2005 and 2006-Oil 5,000 bbl 7,000 bbl Gas 50,000 Mcf 70,000 Mcf