Recording Entries Related to the Purchase and Depletion of Natural Resources

On May, 1, 2020, Star Mines Inc. purchased an ore mine for $1,800,000 to access an estimated 933,000 tons of ore. The company incurred development costs of $135,000 related to the mine and purchased equipment for the mine for $270,000 with a useful life of 8 years. The equipment has no use outside of this mine project. The company is expected to restore the land for alternative uses after mining is complete. The present value of the restoration cost is estimated to be $60,000. The company extracted 108,000 tons of ore in 2020 and sold 90,000 tons.

a. Record the entry for purchase of the mine and equipment. Assume all purchases were for cash.

Account Name	Dr.	Cr.
CashInventory--OreMine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained Earnings-Prior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A
CashInventory--OreMine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained Earnings-Prior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A
To record purchase of mine
CashInventory--OreMine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained Earnings-Prior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A
CashInventory--OreMine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained Earnings-Prior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A
To record purchase of mine equipment

b. Record the entry for (1) depletion of the ore and (2) cost of sale of ore in 2020. Note: Round the depletion rate to two decimals in your calculations; for example, use a depletion rate of 1.42 for 1.424, or 1.43 for 1.425.

Account Name	Dr.	Cr.
CashInventory--OreMine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained Earnings-Prior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A
CashInventory--OreMine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained Earnings-Prior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A
To record depletion of ore
CashInventory--OreMine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained Earnings-Prior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A
CashInventory--OreMine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained Earnings-Prior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A
To record cost of sale of ore

c. For 2020, prepare entries to record (1) accumulated depreciation and (2) cost of goods sold for costs related to the equipment used in the mine. Use account labeled Accumulated Depreciation. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Note: The second entry related to cost of goods sold is given. Record the entry related to accumulated depreciation.

Account Name	Dr.	Cr.
CashInventory--OreMine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained Earnings-Prior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A
CashInventory--OreMine PropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained Earnings-Prior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A
To record accumulated depreciation.

Account Name	Dr.	Cr.
Cost of Goods Sold	26,045
Inventory--Ore		26,045
To record cost of goods sold.

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My Question is how did they get the COGS of 26,045, I am having trouble with the math. I just need to know how they came to that amount.