Feller Company purchased a site for a limestone quarry for $100,000 on January 2, 2013. It estimates that the quarry will yield 400,000 tons of limestone. It estimates that its retirement obligation has a fair value of $20,000, after which the land could be sold for $10,000. In 2013, 80,000 tons were quarried and 60,000 tons sold. Costs of production are $4 per ton.
Required:
- Compute the depletion cost per ton. Round to three decimal places.$ ??
- Compute the total cost of the inventory at December 31, 2013.$
- Compute the total cost of goods sold for 2013.$