King Oil Company has the working interest in a fully developed lease located in Texas.

As of 12/31/07, the lease had proved developed reserves of 1,200,000 barrels and unrecovered costs of \($12,000,000.\) During the third quarter of 2008, a new reserve study was received that estimated proved developed reserves of 1,500,000 as of August 1, 2008.

Calculate DD&A for each quarter, assuming the following production and using the first method illustrated in the chapter.

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Quarter Production 1 30,000 2 35,000 July 10,000 August 15,000 September 12,000 4 40,000