Answer:
Depletion expense=$20,000
Explanation:
Depletion expense is a way of measuring the total value of the unit purchased in terms of cost per unit of its sale. It is usually used in businesses involving mining.
The formula for calculating the depletion expense is be given by;
Depletion expense=cost per unit×total number of units sold
where;
Cost per unit=Purchase cost/total units
Cost per unit=300,000/600,000=$0.5 per unit
Total units sold= 40,000 tons
Replacing;
Depletion expense=Cost per unit×total number of units sold
Depletion expense=(0.5×40,000)=$20,000
Depletion expense=$20,000
