Exercise $11-16($Algo$)$ Depletion $[$L$011-3]$

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 $$2,060,000.$ The company expects to extract $1,030,000$ tons of

copper during a four$-$year period. During $2024,520,000$ 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?

Is depietion considered part of the product cost and Included in the cost of inventory?