On May $21,$ year $1,$ the Minemint 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 $$2,000,000.$ The company expects to extract $400,000$ tons of coal during a four$-$year

period. During year $1,120,000$ tons were extracted and sold immediately.

Required:

$1.$ Calculate depletion for year $1.$

$2.$ Is depletion considered part of the product cost and included in the cost of inventory

$($yes$/$no$)?$ Discuss.